Purchasing REO property or a foreclosure in Missoula?


	Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. For more information, you can contact me through my site or e-mail me. I'm glad to address any questions you have regarding real estate foreclosures.

What is an REO?

"REO" is short for Real Estate Owned. These are properties which have been foreclosed upon and are now held by the bank or mortgage company. This is different than a property up for foreclosure auction. Clark Fork Realty has experience to share with foreclosures and bank owned properties in Missoula, Montana

Clark Fork Realty has experience to share with foreclosures and bank owned properties in Missoula, Montana

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. The buyer must also be prepared to pay with cash in hand. And on top of all that, you'll accept the property 100% as is. That could comprise of prevailing liens and even current residents that may require removal.

A bank-owned property, conversely, is a much neater and attractive transaction. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will deal with the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

Note 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 make known any defects they are aware of. By hiring Clark Fork Realty, you can rest assured knowing all parties are fulfilling Montana state disclosure requirements.

Are REO properties a bargain in Missoula County?

It is occasionally thought that any foreclosure must be a good buy and an opportunity for easy money. This frequently isn't true. You have to be prudent about buying a REO if your intent is to make money off of it. Even though the bank is usually eager to sell it promptly, they are also motivated to get as much as they can for it.

Clark Fork Realty has experience to share with foreclosures and bank owned properties in Missoula, Montana

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. The bargains with money making potential exist, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and may lose money.

Ready to make an offer?

Most mortgage companies have staff 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 typically hire a listing agent.

Prior to 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 what they know about the condition of the property and what their process is for accepting offers. Since banks almost always 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 cancel the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

Once you've submitted your offer, it's customary for the bank to respond with a counter offer. At this point it will be up to you to decide whether to accept their counter, or make another counter offer. Your deal could be final in one day, but that's rare. 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. Clark Fork Realty is accustomed to these situations and will work to ensure there are no unnecessary delays.