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 that is in foreclosure. These are special offers and you must know a little about construction or bring your own inspector with you. One you don’t have to pay for. You will not be reimbursed for this inspection and you will not be able to obtain an inspection after signing the purchase contract.

All REO property is sold “as is” and you will not normally be able to get an inspection contingency on which a buyer can back out. However, sometimes a bank loan officer will qualify you for more to include necessary renewals. You should probably have your own lawyer advise you during the contract period. Your agent should meet with a contractor so you know realistically how much the rehab will cost. You can then decide how much to offer for the property. They usually ask for a 10% security deposit but try to stay around $1000.00.

Zion Bank Corporation offers all kinds of loans but they also have a banking REO 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 run REOs. Searching the web is a good way to find and gain knowledge about bank-owned REO properties. Once a foreclosed property is in REO, the title is usually clear and you do not have to pay a fee to access this information. In fact, they give you plenty of tips for making deals on REO properties from Freddie Mac.

One of the top tips if you’re thinking of making a foreclosure offer is to get a Home Depot inspector. They do not charge and will look at the house before making an offer. You cannot get an inspection on an REO apartment home from a bank after you have made an offer. Always have an agent meet with a contractor so you know the cost of any repairs that need to be done and you will have a real investment property. You can really get stuck if you don’t have all the facts.