Looking for REO property or a foreclosure in Milwaukee?
Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
For more information, just contact us
through our site or e-mail us
. We're glad to address questions you have about real estate foreclosures.
What is an REO?
"REO" is Real Estate Owned. These are houses which have been foreclosed upon that the bank or mortgage company presently owns. This is not the same as a property up for foreclosure auction.
When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. The buyer must also be ready to pay with cash in hand. To top everything off, you'll accept the property totally as is. That may include existing liens and even current residents that may require removal.
A bank-owned property, by contrast, is a more tidy and attractive option. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The bank will take care of the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.
Take notice that REOs may be exempt from typical disclosure requirements.
In California, for example, banks do not have to give a Transfer Disclosure Statement,
a document that ordinarily requires sellers to make known any defects of which they are informed.
By hiring REALiTEAM Real Estate Group, you can rest assured knowing all parties are fulfilling Wisconsin state disclosure requirements.
Are REO properties a bargain in Milwaukee?
It's occasionally presumed that any REO must be a good buy and a possibility for guaranteed profit. This simply isn't true. You have to be cautious about buying a REO if your intent is to profit from the sale. While it's true that the bank is often anxious to offload it promptly, they are also looking to get as much as they can for it.
Look closely at the listing and sales prices of comparable properties in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in.
The bargains with money making potential exist, and many people do very well buying foreclosures. But, there are also many REOs that are not good buys and not likely to turn a profit.
All set to make an offer?
Most banks have staff dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will typically hire a listing agent.
Before making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about their knowledge concerning the condition of the property and what their process is for taking offers. Since banks usually sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for hidden damage and retract the offer if you find it.
If, as a buyer, you can provide documentation demonstrating your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any real estate offer.)
After you've submitted your offer, you can expect the bank to respond with a counter offer. Then it will be up to you to decide whether to accept their counter, or submit another counter offer.
Your deal might be settled in a single day, but that's usually not the case. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.