What is an REO property and how do I find one in OC?
An REO or Real Estate Owned property is a home that’s been through the foreclosure process and is now held by the lending institution. When borrowers default on their monthly mortgage payments, lenders will start foreclosure proceedings beginning with the notice of default, through the pre-foreclosure stage and into the final foreclosure step of the bank taking possession of the home, or REO.
REO homes are often sold by banks at below market values in order to sell quickly. REO homes are expensive for banks to hold because they require maintenance and the bank may have to repay any liens against the property.
Foreclosures that are owned by banks are usually clear of any liens that may have been recorded against the property.
Since the seller of REO homes is also the lender, you may be able to negotiate with the bank to have them pay for all or some of the closing costs.
Bank-owned properties are usually vacant because the banks have evicted the previous owner, saving the investor or homebuyer time, money and emotional toll involved in the eviction process.
The first step is to determine your NEEDS and WANTS. You NEED a 3 bedroom home, you NEED to be in a good school district, you WANT a yard for entertaining, you WANT to be close to shopping and have freeway access. Don’t settle for less than what you really want just because there may be a good value on a home. You and your family need to be happy and without regrets. We have a reputable system that allows you to search for your dream home 24/7 and uses the latest technology to insure up-to-the-minute information. Click the home search section on our website and create a search that insures all your NEEDS and WANTS are met.
Buying an REO can be a competitive process. You want to be ready. Speak with a mortgage planner prior to starting your search. You will be pre approved and know exactly what you can afford, factoring in HOA dues, taxes and other fees related to buying your home. A mortgage planner can assure you of these costs and get you pre approved.
Once pre approved, you can make that offer if you find your dream home. Most Orange County REO properties are on the market less than 2 weeks, some as little as a few days.
We can customize a search for you and let you know when an REO/BANK OWNED Property comes on the market that fits your criteria.
There are amazing values here in Orange County and we at the WeeksTeam are skilled in making one of them your dream home! We look forward to talking with you about your housing needs and finding you a home that satisfies all your wants and needs!