Interested in REO property or a foreclosure in Sayreville?

Just as with any home purchase, your smartest move is to hire a professional real estate agent. For more information, you can contact me through our site or e-mail me. I'm happy to answer questions you have about real estate foreclosures.

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 real estate up for foreclosure auction. Dineen Realty has experience to share with foreclosures and bank owned properties in Sayreville, New Jersey

If you buy 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 able to pay with cash in hand. And on top of all that, you'll accept the property entirely as is. That possibly will involve prevailing liens and even current tenants that need to be expelled.

A bank-owned property, conversely, is a more tidy and attractive option. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The bank will take care of the removal of tax liens, evict occupants if needed and generally arrange 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 ordinarily requires sellers to reveal any defects they are aware of. By hiring Dineen Realty, you can rest assured knowing all parties are fulfilling New Jersey state disclosure requirements.

Am We guaranteed a low price when investing in a bank owned property in Sayreville?

It is occasionally thought that any foreclosure must be a good deal and a chance for guaranteed profit. This often isn't true. You have to be very careful about buying a REO if your intent is make money. Even though the bank is often anxious to offload it fast, they are also looking to get as much as they can for it.

Dineen Realty has experience to share with foreclosures and bank owned properties in Sayreville, New Jersey When pondering what to pay for REO property, 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. There are bargains with potential to make money, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most banks have a department dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will typically hire a listing agent.

Before 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 concerning the condition of the property and what their process is for receiving offers. Since banks most commonly 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 terminate the offer if you find it. If, as a buyer, you can provide documentation proving your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.)

Once you've made your offer, it's customary for the bank to make a counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your transaction could be settled in a single day, but that's usually not the case. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.

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