All Arizona REO

REO Buyer Resources

What is an REO?

What should I know about buying and REO home?

What is the buying process for REO homes?

Is an REO always a "good deal"?

Can my agent help me buy an REO?

Your home for Arizona bank owned properties

Information on Buying REO Property

Real-Estate Owned (REO), or "bank-owned," properties for sale are unique opportunities to purchase real estate, often at a discount. As you look at these often distressed properties here are a few things to think about:

An REO is a Bank-Owned Home.

As a property buyer, it's likely that have heard about, or are seeing, homes for sale referred to as "REO" or "bank-owned" homes. Essentially, these properties are one and the same. They are homes that have been through the entire foreclosure process and are now owned by the lender. This means that the seller is the bank or other institution that may have insured the loan. Often the larger banking institutions will outsource their servicing of the loans/foreclosures to a smaller servicing company or even sell large packages of loans to investors who then take on the servicing work themselves.

Important Things to Know About Buying an REO.

  • Know the market. You may find a "deal" when buying an foreclosure, but it is very important that your offer price is comparable with other homes in the neighborhood. Most banks will negotiate; however, their primary goal is to sell the home at or near current market value. Be sure you have a real estate agent familiar with the area and REO sales.
  • Budget your repairs. Most foreclosure homes are sold "as is," so there is likely to be moderate to extensive renovations or repairs. remember time is money, be sure and budget the time required to complete the work. Having a contractor bid your repair costs during your inspection period is advisable.
  • Inspect the property. Always have the property inspected. This is an extremely important step for your real estate transaction. REO homes have often been neglected, left vacant for long periods of time, or wantonly damaged. A inspector may find problems with he property not readily apparent.
  • Be prepared. Acting quickly is often the key to an REO purchase. The seller often wants to sell the property quickly and other buyers are looking at the same deals you are. Being prepared means having your financing pre-approved and cash funds on hand. Once you find the right property move quickly to submit your offer.

The REO Buying Process.

The process for an REO is similar to the purchase of other homes. There will be some additional paperwork and often and absence of seller disclosures. Be sure you and your real estate agent read through tem carefully and make sure you have a clear understanding of the disclosures you are not receiving from the seller.

  1. Get loan approval of have cash ready. This is a critical step in your real estate transaction. It allows you to determine how much you have to spend and just as importantly shows sellers that you are an able buyer. Some lenders with REO properties will request you receive pre-approval with their preferred lender. Often this is to assure them of the quality of the pre approval and because they know the preferred vendor will close the sale on time.
  2. Find the right licensed real estate professional and begin your search A qualified real estate professional with a proven track record in all types of transactions, including short sales and REOs is advisable. Here at All Arizona REO we know the REO process from top to bottom, know which questions to ask, and often have great contractors and other vendors to refer to you. We hope you will use us as your REO real estate professional.
  3. Make the offer. Your real estate professional will share with you market data and work with you to prepare your offer. Often your best offer is an offer that does not ask much of the seller and closes quickly.
  4. Wait for a response. Waiting is no fun, but be patient. Often there are 2 or maybe even 4 people or departments that will have to review your offer before it may be approved or even countered. Response times vary depending on the seller. Typical times vary from a day to a week, longer in some cases.
  5. Complete the closing Once the offer is accepted, you will move through the transaction just like any other real estate purchase. Be sure and have the property inspected. Sometimes the seller will not activate utilities. In this case it is smart to turn them on in your name for an "Inspection Turn On," often the utility company will turn on for a few days at a minimal cost.

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E-mail Links and Contact Numbers

Phoenix West Valley: 480-347-0200

Phoenix East Valley: 480-347-0200

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