Interested in REO property or a foreclosure in Powder Springs?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional.

What is an REO?

"REO" or Real Estate Owned are homes which have completed the foreclosure process and are now possessed by the bank or mortgage company. This is not the same as a property up for foreclosure auction. OSA Realty has experience to share with foreclosures and bank owned properties in Powder Springs, Georgia

OSA Realty has experience to share with foreclosures and bank owned properties in Powder Springs, Georgia

If you buy 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. The buyer must also be able to pay with cash in hand. Finally, you'll get the property completely as is. That possibly will comprise of existing liens and even current occupants that may require eviction.

A bank-owned property, on the other hand, is a much neater and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The lender will deal with the elimination 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 standard disclosure requirements. For instance, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to tell you about any defects they are aware of. By hiring OSA Realty, you can rest assured knowing all parties are fulfilling Georgia state disclosure requirements.

Are REO properties a bargain in Powder Springs?

It is frequently believed that any REO must be a steal and a chance for guaranteed profit. This simply isn't true. You have to be prudent about buying a repossession if your intent is to make money off of it. Even though the bank is usually anxious to offload it promptly, they are also looking to minimize any losses.

OSA Realty has experience to share with foreclosures and bank owned properties in Powder Springs, Georgia

Look closely at the listing and sales prices of competing homes in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most mortgage companies have a department 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 often contract with 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 receiving offers. Since banks almost always sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unknown damage and terminate the offer if you find it. If, as a buyer, you can provide documentation proving your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any real estate offer.)

After you've presented your offer, you can expect the bank to make a counter offer. At this point it will be up to you to decide whether to accept their counter, or submit another counter offer. Your transaction could 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.