Interested in REO property or a foreclosure in Hilo?


	Just as with any property purchase, your smartest move is to hire a professional real estate agent. For more information, simply contact me through my site or e-mail me. I'm glad to answer questions you have regarding real estate foreclosures.

What is an REO?

"REO" is short for Real Estate Owned. These are properties which have been through foreclosure and are presently possessed by the bank or mortgage company. This is different than a property up for foreclosure auction. Prudential Orchid Isle Properties has experience to share with foreclosures and bank owned properties in Hilo, Hawaii

Prudential Orchid Isle Properties has experience to share with foreclosures and bank owned properties in Hilo, Hawaii

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. You must also be willing to pay with cash in hand. And on top of all that, you'll accept the property completely as is. That possibly will comprise of current liens and even current occupants that may require expulsion.

A bank-owned property, on the contrary, is a much neater and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will deal with the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from typical disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to make known any defects of which they are aware. By hiring Prudential Orchid Isle Properties, you can rest assured knowing all parties are fulfilling Hawaii state disclosure requirements.

Are REO properties a bargain in Hawaii County?

It is occasionally believed that any foreclosure must be a good deal and an opportunity for easy money. This often isn't true. You have to be cautious about buying a repossession if your intent is profit from the sale. While it's true that the bank is often anxious to sell it fast, they are also motivated to get as much as they can for it.

Prudential Orchid Isle Properties has experience to share with foreclosures and bank owned properties in Hilo, Hawaii

Look closely at the listing and sales prices of comparable homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or remodeling 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. Still there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will usually use a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about what they know about the condition of the property and what their process is for accepting offers. Since banks most commonly 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 withdraw the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've made your offer, it's customary for the bank to counter offer. Then it will be up to you to decide whether to accept their counter, or submit another counter offer. Realize, you'll be contending with a process that most likely involves multiple people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks. Prudential Orchid Isle Properties is accustomed to these situations and will work to ensure there are no undue delays.