Purchasing REO property or a foreclosure in Toms River?


	Just as with any property purchase, your smartest move is to hire a professional real estate agent. For more information, just contact me through my site or e-mail me. I'm glad to answer any questions you have about real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are homes which have gone through foreclosure and are currently held by the bank or mortgage company. This differs from real estate up for foreclosure auction. Veltri and Associates, Realtors has experience to share with foreclosures and bank owned properties in Toms River, New Jersey

Veltri and Associates, Realtors has experience to share with foreclosures and bank owned properties in Toms River, New Jersey

When buying 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. To top everything off, you'll receive the property 100% as is. That possibly could include existing liens and even current occupants that need to be removed.

A bank-owned property, conversely, is a more tidy and attractive option. The REO property didn't find a buyer during foreclosure auction. The lender now 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 normal disclosure requirements. For instance, in California, banks are not required to give a Transfer Disclosure Statement, a document that normally requires sellers to make known any defects of which they are informed. By hiring Veltri and Associates, Realtors, you can rest assured knowing all parties are fulfilling New Jersey state disclosure requirements.

Am I guaranteed a good deal when buying an REO property in Toms River?

It's commonly believed that any foreclosure must be a good deal and a chance for guaranteed profit. This isn't necessarily 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 eager to offload it quickly, they are also looking to get as much as they can for it.

Veltri and Associates, Realtors has experience to share with foreclosures and bank owned properties in Toms River, New Jersey

When pondering the value of REO property, carefully analyze comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Time to make an offer?

Most banks have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will usually use a listing agent.

Prior to 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 their knowledge concerning the condition of the property and what their process is for getting 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 hidden damage and retract the offer if you find it. As with making any offer on real estate, providing documentation showing your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.

After you've submitted your offer, it's customary for the bank to counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Understand, you'll be contending with a process that probably involves several people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks. Veltri and Associates, Realtors is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.