How to buy bank Real Estate Owned properties (REO’s)
There are several factors to consider before you buy a foreclosure in Suffolk County. Foreclosures are also called Real Estate Owned (REO) properties and belong to the bank.
Reminders before Purchasing a Foreclosure
Most banks work with investors to purchase foreclosures and get the best deal for them. This is why foreclosures are listed on Multiple Listing (MLS), to let as many people know about them as possible.
Once you make an offer to purchase a home, banks may counter your offer. They need to show shareholders, investors, and auditors that they have offered to get the highest possible price.
Get Proper Real Estate Assistance
Banks often sell foreclosures in as-is condition without shouldering the cost of repairs. To avoid the extra cost, make sure that you get advice from an experienced foreclosure specialist before proceeding with your chosen property.
Requirements for Foreclosure Property Offers
• An As-Is Statement
• All Offers Must Be Submitted in Writing
• A Lead-Based Paint Disclosure
• A Mold Disclosure
• Buyer’s Agreement to Pay the NYS Transfer Tax
All-Cash Offers
Before proceeding with your offer to acquire a property, you should have a proof of funds letter less than 30 days old. It should either be a bank letter or a statement on its letterhead.
Financed Offers
Your pre-approval letter needs to specify the type of loan you have chosen and should be less than 30 days old. Proof of funds for a down payment and closing costs is required. If the home does not qualify for traditional financing, you can get a 203(k) rehab loan or other renovation-type loans.
Buyers will be required to close on the property within 30 days. The bank may require a buyer to use their bank or work with a specific title company.
Often, an offer may only be presented to the bank if the above requirements are met. Once a deal is accepted, backup offers are only shown to the bank if the initial value falls through.
Contact a Foreclosure Expert
Once you see an REO property and want more information, call Evan Greene to assist you. I have much experience with foreclosures and can help you navigate buying one. I can help you understand the paperwork, negotiate with the bank, and get the best possible price on the property.
Click Here to Download: How-To-Buy-A-Foreclosure.pdf