Buying a Foreclosure (Under revision)
We are in a market that was saturated with foreclosed properties.Now there are not so many of them. The backlog may be sold in bulk to investors who it is rumored may have to hold on to them for 5 years before they can sell them. The availability of foreclosed homes is not there the way it used to be.
These are properties where the previous homeowner went into default on their mortgage payments. The Lender went through the legal process of a foreclosure and has taken the property back. These bank owned properties are called REO properties meaning that the lender or guarantor of the loan now owns the property. (The term “REO” derives from Real Estate Owned by the lender or bank).
A REO property can be a great investment if purchased with the correct guidance and knowledge from an experienced Realtor®. The process is different from a short sale and from a conventional sale. The Buyer’s agent must be familiar with the nuances of this type of negotiation for the purchase to be a wise investment.
For example, consistent follow up is key to a speedy answer from the banks. Pages of addendums, mountains of paperwork, will need to be understood completely and be completed properly. Extremely important is title insurance and clean title. Even though these properties are sold “as is” there must be a Due Diligence period with utilities turned on for an inspection.
Many Buyers have been burnt by not knowing these facts and by not doing his/her due diligence.
Your “Georgia Real Estate Broker” knows how to represent you in the purchase of a foreclosed home in Cobb County and surrounding areas!
Purchasing an REO property could mean instant equity, a future investment, and a great home.