Are Bank REO departments helping you?

If you are looking for an investment in an REO property, take your time, do your homework, and you could save money and get a good property. The bank’s REO departments work with you and your agent, if you have one, to sell you a home in foreclosure. These are specials and you should know a little about construction or bring your own inspector with you. Preferably one that you don’t have to pay for. You will not be reimbursed for this inspection and you will not be able to get an inspection after signing the purchase contract.

All REO property is being sold “as is” and you will normally not be able to get an inspection contingency in which a buyer can withdraw. Sometimes, however, a bank loan officer will rate you for more to include necessary renovations. You should probably have your own lawyer to advise you during the contract period. Your agent should meet with a contractor so you know realistically what the cost of the rehab will be. Then you can decide how much to offer for the property. Usually they ask for a 10% advance in guarantee, but they try to keep around $ 1000.00.

Zion Bank Corporation offers all types of loans but also has an REO banking department. This bank has been in business since 1873 and is a member of the S&P 500. It is just one of many that works with REO. Searching the web is a good way to find and gain insight into bank owned REO properties. Once a foreclosed property is in REO, the title is generally clean and you don’t have to pay a fee to access this information. In fact, they give you a lot of tips for bidding on Freddie Mac REO properties.

One of the top tips if you are considering bidding on foreclosure is to get a Home Depot inspector. They do not charge and will check the house before you bid. You cannot get a REO department house inspection from a bank after you have made an offer. Always have an agent meet with a contractor so you know what the cost of the repairs that need to be done to own a real investment property is. You can really get stuck if you don’t have all the facts.