Looking for REO property or a foreclosure in Cedar Rapids?


	Investing in a bank-owned property is not something to be taken casually.

What is an REO?

"REO" or Real Estate Owned are houses which have been foreclosed upon and are presently held by the bank or mortgage company. This is unlike a property up for foreclosure auction. WHY USA Eastern Iowa Realty has experience to share with foreclosures and bank owned properties in Cedar Rapids, Iowa

WHY USA Eastern Iowa Realty has experience to share with foreclosures and bank owned properties in Cedar Rapids, Iowa

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. The buyer must also be willing to pay with cash in hand. To top everything off, you'll accept the property totally as is. That possibly may comprise of standing liens and even current tenants that need to be evicted.

A bank-owned property, on the other hand, is a much cleaner and attractive proposition. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will attend to the elimination of tax liens, evict occupants if needed and generally plan 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 example, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that typically requires sellers to reveal any defects of which they are informed. By hiring WHY USA Eastern Iowa Realty, you can rest assured knowing all parties are fulfilling Iowa state disclosure requirements.

Are REO properties a bargain in Linn County?

It's sometimes presumed that any REO must be a good deal and an opportunity for easy money. This often isn't true. You have to be prudent about buying a repossession if your intent is profit from the sale. Even though the bank is often eager to sell it quickly, they are also motivated to get as much as they can for it.

WHY USA Eastern Iowa Realty has experience to share with foreclosures and bank owned properties in Cedar Rapids, Iowa

When contemplating the value of a foreclosure, 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. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and may not be money makers.

All set to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with when buying REO property from them. Normally 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 their knowledge concerning the condition of the property and what their process is for getting offers. Since banks typically sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unknown damage and terminate the offer if you find it. As with making any offer on real estate, providing documentation proving your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've made your offer, it's customary for the bank to make a counter offer. At this point it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Your transaction might be final in one day, but that's rare. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. WHY USA Eastern Iowa Realty 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.