Purchasing REO property or a foreclosure in Albuquerque?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. If you have questions about real estate in Albuquerque, New Mexico, call me or send me an e-mail.

What is an REO?

"REO" is short for Real Estate Owned. These are houses which have been foreclosed upon and are now held by the bank or mortgage company. This differs from real estate up for foreclosure auction. JP & Associates has experience to share with foreclosures and bank owned properties in Albuquerque, New Mexico

JP & Associates has experience to share with foreclosures and bank owned properties in Albuquerque, New Mexico

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 willing to pay with cash in hand. Finally, you'll accept the property entirely as is. That may involve existing liens and even current residents that may require eviction.

A bank-owned property, by contrast, is a much cleaner and attractive proposition. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The lender will handle the removal of tax liens, evict occupants if needed and generally arrange 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 example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to reveal any defects of which they are aware. By hiring JP & Associates, you can rest assured knowing all parties are fulfilling New Mexico state disclosure requirements.

Am I assured a low price when buying a bank owned property in Albuquerque?

It is occasionally believed that any REO must be a good deal and a possibility for guaranteed profit. This frequently isn't true. You have to be prudent about buying a repossession if your intent is make money. Even though the bank is typically eager to sell it fast, they are also motivated to get as much as they can for it.

JP & Associates has experience to share with foreclosures and bank owned properties in Albuquerque, New Mexico

Look closely at the listing and sales prices of similar homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades 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 flipping foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

Ready to make an offer?

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

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about their knowledge concerning the condition of the property and what their process is for receiving offers. Since banks most commonly sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and terminate the offer if you find it. If, as a buyer, you can provide documentation showing 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 goes for any real estate offer.)

After you've made your offer, it's customary for the bank to counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer. Understand, you'll be dealing with a process that generally involves multiple people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks.