"REO", "Bank Owned", "Lender Owned", "Corporate Owned" are all the same name as Foreclosed Properties Because the word "foreclosed" has a lot of negative connotations, most banks and investors prefer not to use it. So instead of “foreclosed” or “foreclosure properties”, companies will use phrases like “bank-owned” properties, “lender-owned” “corporate owned”, or “REO” properties. The term "bank owned" is used when banks like Chase, US Bank, Wells Fargo, National City Bank, or Bank of America, for example, have possession of a property, usually after a homeowner has been unable to pay what they owe.
"Lender owned" is generally used when a mortgage company or group of investor/lenders own a property; and "Corporate Owned" means that the property is owned by a corporation such FNMA (“Fannie Mae”), FMAC (“Freddie Mac”), and other corporate entities who have not necessarily financed the mortgage, but have insured the mortgage that has since defaulted. For a typical buyer, it can be 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 reputation and experience with foreclosure properties. The majority of properties are purchased through a real estate agent using a standard Purchase Contract. Once a foreclosure, bank-owned or REO property has been assigned to a specific agent, and that agent has listed the property in the Hawaii Multiple Listing Service (MLS), the process is fairly simple: BUYING A FORECLOSURE PROPERTY - THE PROCESS - Know that you want the property! KNOW EXACTLY WHAT YOU’RE PURCHASING BEFORE YOU SUBMIT THE OFFER, AND DON'T SUBMIT AN OFFER IF YOU HAVE RESERVATIONS.
- Get a Property Inspection. It’s strongly recommended to have a licensed contractor or home inspector inspect the property BEFORE making an offer. Know exactly what’s going on with a particular property, what it would take to get it into livable or marketable shape, and if you’re comfortable with the time and dollar amounts involved.
- Prequalify the Property if You’re Getting a Loan. Many buyers qualify personally, but do the properties they want to purchase qualify for the loan? Talk to your lender. Find out if they can choose their own appraisers or not.
- Ask the Right Questions. When talking to your lender, ask about 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 (for 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. There are numerous options, and a good lender will be able to explain the advantages and disadvantages of each one.
- Bank Addendum. Nobody likes these, but they are mandatory.
And finally, remember these points: The Inspection period is approx. 10 days or less, so you’ve got to have all your ducks in a row the moment you submit your offer. Your agent will tell you everything that needs to be completed, so that you’ll be ready. It usually takes approx. 5 days or less for final bank approval. The escrow is opened by the seller’s agent and most of the work is done by your agent and your lender. All you’re required to do is to wire the down payment to escrow, and sign the purchase documents. So, you’ve found the right property, you've done the inspections, the property has been qualified by your lender, you’re sure you want the house, you’ve submitted your offer and the bank says "yes", then you're on a quick journey to being the new owner of a (previously) bank-owned home, condo or piece of land. Congratulations! Now comes the sales pitch – here’s why you should choose our company to assist you with purchasing your Hawaii foreclosure property: We Are Your Premier Big Island Foreclosure Specialists Carole A. Fisher, R(S) - 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. In 2008, I closed almost $6,000,000. In 2009, I closed over $10,000,000 in gross REO sales. I know the foreclosure and short sale business inside and out! We invite you to contact us at (808) 895-3940
or via E-mail for all your REO and Foreclosure needs. |