REO, Bank Owned, Lender Owned, Corporate Owned are all the same name as Foreclosed Properties The term "Foreclosed" offers a negative tone which most banks and investors prefer not to use. So you'll see REO, bank, lender or corporate owned. The term "bank owned" is used when a bank like Chase, Wells Fargo, Bank of America, etc. owns the property.
"Lender owned" is generally used when a mortgage company or group of investor/lenders is the owner; and "Corporate Owned" means corporately owned like Fannie Mae or Freddie Mac, and other corporate entities who have not necessarily financed the mortgage, but have insured the mortgage that has since defaulted. As a buyer, it is extremely difficult to purchase a property directly from the bank, lender or corporation itself. Because of the many state real estate regulations, these properties are governed by "Asset Managing Companies", and then assigned to local real estate agents with a good standing. The majority of properties are purchased through a real estate agent using a standard Purchase Contract with various Broker Addendum. Once a bank owned property has been assigned to an agent, and that agent has listed the property in the open MLS, the process is quite simple: - It is highly suggested and encouraged to have a licensed contractor or home inspector check the property out BEFORE writing an offer. Know what you're getting into before you get stuck with your pants down.
- Prequalify the property if seeking financing. Many buyers qualify, but do the properties they want to purchase? Talk to your lender. Find out if they can choose their own appraisers or not.
- When talking to your lender, ask for various programs. Don't just take the one with the cheapest rate; you might find yourself spending more out of pocket. If you like USDA (first time home buyer's) but the property doesn't qualify, ask about the USDA Rehab program...it's still USDA, but with a twist.
- Inspection period is 10 days or less, so remember - you must have all your ducks in a row the moment you submit your offer.
- Bank's Addendum...can we say "boohoo". Nobody likes these, but they are mandatory. So now we go back to point#1. KNOW WHAT YOU ARE PURCHASING BEFORE YOU SUBMIT THE OFFER, AND DON'T SUBMIT AN OFFER IF YOU HAVE RESERVATIONS. Know that you want the property!
On a brighter note...once you have found the property, you've done the inspections, the property has been qualified by your lender and you want the house more than your children (just kidding), you have submitted your offer and the bank says "yes", then you're on a quick journey.
It usually takes only 5 or less days for final bank approval, the escrow is opened by the seller and most and most of the work is done by your agent and your lender... all you get to do is sign the loan package and wire some money into escrow. Before you know it, you are the proud owner of a bank owned home, condo or land lot. Now comes the sales pitch...(you didn't think I would let you off the hook?) In 2008, I closed almost $6,000,000. In 2009, I closed over $10,000,000 in gross REO sales. I work with a team of buyer's agents - Lori Henbest, R(S) and Lisa Barry, R(S) as well as John Langbridge, a 35 year veteran contractor. Both Lori and Lisa hold certifications in either REO or Short Sales, and know the business very well. We are your premier Big Island Foreclosure Specialists. I have designations with Default School and the 5-Star Institute. I have a Platinum Certification with Equator (formally REOTrans), and I'm a Certified Res.Net Agent.
I invite you to contact us at (808) 895-3940 or via E-mail for all your REO and Foreclosure needs. |