Making an offer on REO property or a foreclosure in OKC?
If you want to buy a foreclosure in OKC, Lifestyle Realty can help.
"REO" or Real Estate Owned are houses which have been foreclosed upon and are presently held by the bank or mortgage company.
REO's are not the same as a property up for foreclosure auction.
When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. The buyer must also be prepared to pay with cash in hand.
And on top of all that, you'll get the property entirely as is. That possibly may consist of standing liens and even current residents that may require removal.
A bank-owned property, conversely, is a much neater and attractive proposition. The REO property didn't find a buyer during foreclosure auction. The bank now owns it.
The lender will handle the removal of tax liens, evict occupants if needed and arrange for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from standard disclosure requirements. By hiring Lifestyle Realty, you can rest assured knowing all parties are fulfilling Oklahoma state disclosure requirements.
It's commonly presumed that foreclosure must be a bargain and a chance for easy money.
This isn't necessarily true. You have to be prudent about buying a repossession if you intend to make money.
Even though the bank is often eager to sell it fast, they are also looking to minimize any losses.
Look carefully at the listing and sales prices of comparable properties in the neighborhood when making an offer on an REO.
Be sure to factor any repairs or remodeling necessary to prepare the house for resale or moving in.
There are bargains with foreclosures in OKC with a potential to make money, and many people do very well buy foreclosures OKC. Still, there are also many REOs that are not good buys and may lose money.
Most banks have staff dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the MLS, the lender will typically contract with a listing agent.
Before making your offer on the foreclosure or REO, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about their knowledge about 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 hidden damage and cancel the offer if you find it.
If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any real estate offer.)
After you've presented your proposal, it's customary for the bank to counter offer. Then it will be your choice whether to accept their counter or make another counteroffer.
Be aware, you'll be contending with a process that usually involves a group of people at the bank, and they don't work evenings or weekends.
It's not unusual for the process of offers and counter-offers to take days or even weeks.
Find a foreclosure using our free search tool.
To learn more about how Lifestyle Realty can help you find foreclosures in OK please contact Niki Higgins for more information on how my team can help you buy, sell or rent properties for residential or business use. Send me a message at email@example.com or call me at 405-919-1098.
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