Buying bank owned and distressed real estate

When dealing with bank owned or distressed real estate, you need a professional on your side to help you make the right decisions. Having been involved in the last real estate downturn of the late 1980's, we can offer you insight and guidance making the right investment decisions. Since 1988, BMIC and its affiliates have been involved in over $2,000,000,000 of mortgage and real estate transaction. We have the depth of experience that few firms can offer. The process of buying bank owned property or REO is fraught with problems.

 
What is an REO?

REO stands for Real Estate Owned. These are properties that have gone through the foreclosure process and are now owned by the lender. This is very different from a property involved in a foreclosure auction. When buying a property involved in a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. You take title to a property that may include existing liens and even current occupants that need to be evicted. An REO property, by contrast, is a much cleaner and attractive transaction. The REO property did not find a third party buyer during 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.

Are you getting a bargain?

Its commonly assumed that any REO must be a bargain and an opportunity for easy money. Nothing could be further from the truth. You have to be cautious about buying a REO if your intent is to capitalize on a worthwhile investment. The saying is that you make your money of a property when you buy it, not when you sell it. While it might be true that a lender is anxious to sell their REO quickly, they are also responsible to shareholders to obtain the highest return that they can for it. When considering the value of a REO, you need professional due diligence to 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 rent or resale. The bargains with money making potential exist, and many people do very well buying REO. But there are ample opportunities to lose money as well. At massreo.com, we're here to make sure that doesn't happen. 

Ready to make an offer?


The multiple listing services available in your area might not be the best way to locate the best opportunities. Often, many properties are not listed by the lenders through traditional channels. Most lenders have a REO department that will be the focal point in buying a REO property. The departments will have the most extensive information about the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties as is, an offer must include an inspection contingency to protect you interests. Your offer will be far more attractive if you include documentation of your ability to transact the property, a service provided by massreo.com for its customers. After we've made your offer, you can expect the bank to make a counter offer. You then will have to decide whether to accept their counter, or offer a counter to the counter offer. When dealing with REO, you'll often be dealing with a process that probably involves multiple parties at the lender and they don' t work evenings or weekends. Its not unusual for the process of offers and counter offers to take days or even weeks. You need the professional help of an experienced REO agent to protect your interests, precisely the services that massreo.com provides its customers every day.

Call us today at 1-800-627-7736 today to get started in buying tremendous opportunities in REO properties.

If you like to view property listings now, please click here.

If you need more information, please click here.