When you are thinking of buying bank owned REO properties, you have two distinct advantages that a buyer does not have with a typical foreclosed property. The first is that you are able to buy on your schedule, as you do not have an auction date to work with and around. You can make an offer on the home any time; you don’t have to wait for bidding to begin.
Another big advantage of our foreclosed homes in Southern California compared to a typical foreclosed property is that you can inspect it before you buy, when you cannot do this with the majority of foreclosed homes that you think about purchasing. Being able to inspect the property before you buy will let you know how big of a project you will be dealing with. Our California foreclosures for sale are the best you’ll find on the market.
Phone: (310) 204-5714
FAQ
What is a REO?
A REO is a property that the lender or bank acquired through foreclosure. It an acronym for Real Estate Owned. It is pronounced by saying the letters, R. E. O.
Is the price firm, or can I make an offer?
All offers are reviewed - making a lowball offer can hurt your chances at receiving a counter offer.
Will the bank counter a lowball offer?
You will get a counter offer, but the asset manger must have a serious offer to give a serious counter. I’ve seen counters only a few hundred dollars less than list price, and a few times the counter has been list price.
If the property needs a lot of work. Will the lender accept less because of this?
The lender is aware of the property’s general condition. Reports have been made by the listing agent and appraiser. Condition of the property has already been taken into consideration when the list price was set. The lender will consider offers, but don’t expect them to knock off thousands for repairs, because they have already lowered the list price due to condition.
Will the lender make repairs?
Very rarely. When the property is listed, it is in some cases remodeled, cleaned, any trash and debris removed, and the yard maintained.
Also very rare, the owner may make minor repairs required by the buyer’s lender as a condition of the loan closing. It is extremely hard to get the asset manger to agree to this.
Do all REO’s need work?
No, many are in move in condition and we have completely remodeled them.
How long will it take for the bank to respond to my offer?
One to three business days is common. Sometimes quicker, rarely longer.
My offer was in first. Won’t it be accepted or countered before any other offer is accepted?
No, the order the offers are received does not matter. All multiple offers are consider at the same time. Sometimes, even if at least one of the offers is acceptable, the asset manger will counter all offers for “The Highest and Best Offer.”
Isn’t the highest offer always accepted?
Absolutely not. There is much more to an offer than the sales price. It is very important to have an agent that knows how to prepare a professionally written offer. Incomplete offers are not even considered. Buyers often focus on price, but there are any other factors for the seller to consider. Financing is very important. Has the buyer been pre-qualified? What kind of loan? Is the closing date too soon, or is it too far away.
Does the property have a clear and good title?
The foreclosure attorney makes sure the title is clear. It is your closing attorney’s job to research the title. If he finds a title issue, it will be corrected prior to closing. If it cannot be corrected, the contract will be voided and your earnest money deposit returned to you.
Who pays the back real estate taxes?
All real estate taxes are paid by the seller up to the day of closing. It is your closing attorney’s job to see that this is done. The buyer is responsible for all real estate taxes from the day of closing forward.
Can I have a Home Inspection?
It is your choice to have one - we will work with you to make sure the property is available for inspection.
Will the bank pay for a termite inspection, septic inspection and well water test?
Sometimes, but not very often. It is highly recommended that you have a buyer have these inspections done. Paying for the inspections is cheap insurance compared to finding out after closing that expensive repairs are needed. If you are financing the purchase, almost all loans will require a termite inspection. Many also will require a septic inspection and well water test. When these inspections are included in the offer, the REO seller will require that they are done within 10 days of the offer acceptance.
11155 W. Washington Blvd | Culver City, CA 90232
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