Making an offer on Bank Owned/REO property or a Foreclosure in Portland?


	Just as with any property purchase, your smartest move is to hire a professional real estate agent. If you have any questions regarding real estate in Portland, Oregon, call me or send me an e-mail.

What's an REO?

"REO" is an abbreviation for Real Estate Owned, also knows as Bank Owned Home. These are houses which have been foreclosed upon and are presently possessed by the bank or mortgage company. This is unlike a property up for foreclosure auction or Short Sale. Keller Williams Realty Professionals / Dave Van Nus and Jeremy Jordan has experience to share with foreclosures and bank owned properties in Portland, Oregon

When buying a property during a Short Sale or Pre-Foreclosure, you are buying the home for less than what is owned on the sellers loan balance plus any interest and other fees accumulated during the pre-foreclosure process. Some Homes are unfinancable due to their current condition and you may need to pay with cash in hand. Since in most cases the sellers can't afford to pay for any needed repairs, you'll most likely accept the property entirely as is. That's why it's important to work with an experienced Realtor®.

A bank-owned property, by contrast, is a much cleaner and attractive proposition. The REO property did not find a buyer during the Short Sale Listing or Foreclosure Auction. The Lender now Owns it. The Lender will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from typical disclosure requirements. In Oregon, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that usually requires sellers to make known any defects of which they are knowledgeable. By hiring Dave Van Nus's Team with Keller Williams Realty Professionals / Dave Van Nus and Jeremy Jordan, you can rest assured knowing all parties are fulfilling Oregon state disclosure requirements.

Am I assured a low price when buying an REO property in Portland? It's occasionally assumed that any REO must be a bargain and a possibility for guaranteed profit. This isn't necessarily the case. You have to be very careful about buying a REO if your intent is to make money off of it. While it's true that the bank is typically eager to offload it soon, they are also looking to get as much as they can for it.

Keller Williams Realty Professionals / Dave Van Nus and Jeremy Jordan has experience to share with foreclosures and bank owned properties in Portland, Oregon When contemplating what to pay for a bank owned home, you need to look closely at 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, room for sweat equity, and many people do very well flipping foreclosures or Bank Owned Homes. However there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most mortgage companies have staff dedicated to REO that you'll work with in buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about what they know regarding the condition of the property and what their process is for receiving offers. Since banks typically 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 unknown damage and terminate the offer if you find it. As with making any offer on real estate, providing documentation showing your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've submitted your offer, you can expect the bank to counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be contending with a process that usually involves several people at the bank, and they don't work evenings or weekends. It's not unusual for there to be days or even weeks of going back and forth. Dave Van Nus's Team at Keller Williams Realty Professionals / Dave Van Nus and Jeremy Jordan are accustomed to these situations and we will work to ensure there are no undue delays.

If you are interested in buying a home and would like our Teams combined experience behind you, please contact us today! You can also submit a Future Home Questionnaire and we start sending you homes that meet your needs and keep you updated!