Looking for REO property or a foreclosure in Mount Sinai?


	Investing in a bank-owned property is not something to be taken casually. If you have any questions about real estate in Mount Sinai, New York, call me or send me an e-mail.

What is an REO?

"REO" stands for Real Estate Owned. These are properties which have gone through foreclosure and are presently held by the bank or mortgage company. This is unlike real estate up for foreclosure auction. Coach Realtors has experience to share with foreclosures and bank owned properties in Mount Sinai, New York

Coach Realtors has experience to share with foreclosures and bank owned properties in Mount Sinai, New York

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. You must also be able to pay with cash in hand. Finally, you'll accept the property completely as is. That might involve existing liens and even current occupants that may require removal.

A bank-owned property, on the contrary, is a much neater and attractive option. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The bank will handle the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Note that REOs may be exempt from normal disclosure requirements. For example, in California, banks are not required to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are knowledgeable. By hiring Coach Realtors, you can rest assured knowing all parties are fulfilling New York state disclosure requirements.

Are REO properties a bargain in Suffolk County?

It is commonly presumed that any foreclosure must be a bargain and a possibility for guaranteed profit. This isn't always true. You have to be very careful about buying a REO if your intent is profit from the sale. While it's true that the bank is often eager to offload it soon, they are also motivated to minimize any losses.

Coach Realtors has experience to share with foreclosures and bank owned properties in Mount Sinai, New York

Look closely at the listing and sales prices of comparable 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. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. Still there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most mortgage companies have staff dedicated to REO that you'll work with in buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.

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 what they know about the condition of the property and what their process is for accepting offers. Since banks usually sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

Once you've presented your offer, it's customary for the bank to make a counter offer. From there it will be your decision whether to accept their counter, or submit another counter offer. Realize, 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 there to be days or even weeks of negotiating back and forth.