As a result of our ailing economy and the recent decline in real estate values, our market has been flooded with short sale properties, pre-foreclosure homes and homes that have been foreclosed upon. Homes that have been foreclosed upon by the lender and are not sold successfully at a foreclosure auction then become bank owned, or as they are often called, Real Estate Owned (REO) properties.

Once a property becomes an REO, the financial institution that took the property back generally lists the property for sale through a Realtor® in the Multiple Listing Service. These REO listings are often in need of some repair and are usually priced accordingly. A percentage of these homes are actually in pretty decent shape. REO’s are sold “as is” and therefore it is important to be cautious when buying. Once under contract you will have an inspection period during which the home can be looked over carefully. The contract can be cancelled during the inspection period if the condition of the home is determined to be unacceptable. It is important when looking to purchase an REO property, to be aware that your lender may not be willing to loan on the home in its present condition. Additionally, the financial institution that owns the property will most likely not agree to repair it. Sometimes this impasse is too problematic to be resolved and the sale cannot go through. Many REO properties are sold for cash thereby circumventing this vicious circle.

There are many pre-foreclosure homes as well as short sale properties listed in the Multiple Listing Service. Just like the REO properties, these types of listings can be specifically searched for by entering the proper search criteria.

If you are interested in purchasing pre-foreclosure or REO properties (or any other type of property for that matter) please contact me. I can create a custom search for you based on the criteria you are looking for.

We can work together to find you just the right property at just the right price!