Looking for REO property or a foreclosure in Des Plaines?
Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
Should you have questions regarding real estate in Des Plaines, Illinois, call me
or send me an e-mail
What's an REO?
"REO" means Real Estate Owned. These are properties which have completed the foreclosure process that the bank or mortgage company presently holds. This is unlike 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 accumulated during the foreclosure process. The buyer must also be ready to pay with cash in hand. Finally, you'll receive the property 100% as is. That possibly will consist of prevailing liens and even current denizens that need to be put out.
A bank-owned property, on the contrary, is a much neater and attractive deal. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The bank will take care of the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from typical disclosure requirements.
For instance, in California, banks are exempt from giving a Transfer Disclosure Statement,
a document that typically requires sellers to make known any defects of which they are aware.
By hiring Patti McDonald - Fresh Horizon Realty, you can rest assured knowing all parties are fulfilling Illinois state disclosure requirements.
Is REO property in Des Plaines a bargain?
It's sometimes thought that any foreclosure must be a good buy and an opportunity for guaranteed profit. This isn't necessarily the case. You have to be cautious about buying a repossession if your intent is to make money off of it. While it's true that the bank is usually anxious to sell it quickly, they are also motivated to get as much as they can for it.
When pondering the value of a foreclosure, 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.
It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. But, there are also many REOs that are not good buys and not likely to turn a profit.
Prepared to make an offer?
Most banks have a department dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will frequently use a listing agent.
Before making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about their knowledge about the condition of the property and what their process is for accepting 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 unseen damage and terminate the offer if you find it.
As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
Once you've presented your offer, you can expect the bank to make a counter offer. At this point it will be up to you to decide whether to accept their counter, or make another counter offer.
Realize, you'll be contending with a process that generally 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. Patti McDonald - Fresh Horizon Realty is used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.