Looking for REO property or a foreclosure in Austin?


	Just as with any property purchase, your wisest move is to hire a professional real estate agent. If you have any questions about real estate in Austin, Texas, call me or send me an e-mail.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are homes which have been foreclosed upon and are presently held by the bank or mortgage company. This is different than a property up for foreclosure auction. Austin Realty Experts has experience to share with foreclosures and bank owned properties in Austin, Texas

Austin Realty Experts has experience to share with foreclosures and bank owned properties in Austin, Texas

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. The buyer must also be prepared to pay with cash in hand. Finally, you'll accept the property totally as is. That possibly may involve prevailing liens and even current denizens that may require expulsion.

A bank-owned property, on the other hand, is a much neater and attractive deal. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The lender will see to the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from standard disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to reveal any defects of which they are aware. By hiring Austin Realty Experts, you can rest assured knowing all parties are fulfilling Texas state disclosure requirements.

Am I guaranteed a bargain when buying an REO property in Austin?

It is occasionally thought that any REO must be a good buy and an opportunity for easy money. This often isn't true. You have to be prudent about buying a REO if your intent is profit from the sale. Even though the bank is often eager to offload it promptly, they are also motivated to minimize any losses.

Austin Realty Experts has experience to share with foreclosures and bank owned properties in Austin, Texas

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. It is possible to find REOs with money-making potential, and many people do very well buying 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. 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 discover as much as you can about what they know regarding the condition of the property and what their process is for accepting offers. Since banks almost always 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 unseen 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. Then it will be up to you to decide whether to accept their counter, or make another counter offer. Be aware, you'll be working with a process that generally involves multiple people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks.