Thinking of Buying an REO Bank Owned Foreclosure?

If you are thinking about buying a foreclosure property as a first time home buyer, looking to up-size or down-size, or purchase a foreclosure as an investment, you are part of over 50% of the home buying marketplace. Buying a foreclosed home is a task that should not be taken lightly. You need to know the ins and outs of buying a REO bank owned foreclosure home. Over the past 3 years, we've represented over 125 bank owned homes in Benicia, Vallejo, Glen Cove, Hiddenbrooke, Fairfield, Vacaville and Suisun City and have put together a detailed list of what you need to know regarding buying a bank owned home in Solano County. If you are looking to buy a foreclosure or any home for sale, please give us a call to help you in your search.

Get Pre-Qualified / Pre-Approved for a Loan - A Most Important Step!!!

The most important step in the process of buying a foreclosure home is to get pre-qualified (or better yet pre-approved) for a loan. Getting pre-qualified for a loan will allow you to zero in on a price range you can afford. The seller of a foreclosure property uses an asset company to act as middle-person between you (and us as the buyers agent if you decide to use our services), the sellers agent, and the lender or investor that owns the REO bank owned real estate. In most (if not all cases now) an asset company will not accept an offer where there is no pre-qualification letter supplied by you (the buyer). They also require an Ernest Money Deposit from 1%-5% of the purchase price. So on a $250,000 purchase the seller may require deposit of from $2,500 to $12,500. They will also need what is called proof of funds which is a copy of bank records showing you have the finances to cover the down payment or enough finances to cover the purchase price if the offer is a cash deal.

Securing financing early in the process is important; it will ensure that you have all the financing you need to purchase the property. Find a lender that has worked with a number of foreclosures and understands the foreclosure process in depth. Taking the time to find the right lender will save you a lot of frustration and may save you from losing out on a great deal. If you need help with getting a loan, please contact Greg Bechelli, Certified Mortgage Planner, at Lendscape Financial. You can get more information about Greg's services here at this website or you can take a look at Greg's Mortgage Website also.

Research the Property

Once you have a handle on your finances you can start looking at properties for sale. You will need to do a lot of research before finding a suitable property. In very rare instances, you may purchase the first property you look at, but generally, it will take you hours of careful research and planning to find a foreclosed property that fits your budget and your needs.

Search for Bank Owned Properties at our website: www.myREOforeclosures.com

Our website allows you to search on ALL properties for sale in Solano County or you can search FOR JUST REO BANK OWNED properties. You can search by city, area, sq ft, beds/baths and such. You can create an account to store properties that you like and get emailed updates on new properties that come onto the market that match your requirements. If you sign up and store properties you find or sign up for email alerts any of the information you provide is not shared with anyone. It is used to do a better job for you.

Research the Area

When you've put together a list of properties that you are interested in, the research is not over. You will need to start looking into the benefits of the surrounding neighborhood, the availability of public and private schools, the population of the area, average property values, the rate of property value growth in the area, and the availability of career and recreational opportunities.

IT IS IMPORTANT TO KNOW that we can provide more information about the property and area in question and do a comparative market analysis report that provides comparables to your target property in the neighborhood. Finding out this information before visiting each property can save you a lot of time and eliminate neighborhoods that would not accommodate your lifestyle.

View the Properties

Once you've compiled a list of potential properties, we will schedule an appointment to view the property. This is the time to find out how accurate the listings were. Carefully examine every nook and cranny of the home, checking for structural damage, rodents, termites, plumbing and heating issues, and other common problems. Check to make sure that all features outlined in each listing are truly available with the purchase. Ask as many questions as you can think of before making a decision. Buying property is one of the biggest and most important decisions that you make in life. You need to have all the information available to you when you are considering a foreclosure purchase. Use this handy checklist to compare homes you are considering.

How much should you pay?

Once you've viewed the properties, you need to consider the price, the condition of the property, and the surrounding neighborhood. Don't make your purchasing decision based on price alone. A very low price can mean that the property was abandoned for many years or was not kept in good condition by the previous owner. It may need extensive renovations that can be expensive and time-consuming. Buying a more expensive home that is in good condition rather than a bargain-basement home that has extensive damage will save you money in the long run. You will also need to find out if there are any liens on the property or if the property has been affected by a bankruptcy. This information is not something you want to find out after you have already progressed through most of the buying process and can be a legal hassle to resolve.

Bid on the Property

Once you've finished all of your research and decided on a property, it will be time to negotiate with the seller or make a bid on the property. Depending on the process being used, you will be working with a number of professionals; including bankers, attorneys, real estate agents, and other representatives of the home. During this negotiation process, you may be able to get a deal on the total cost of purchasing the home. If you're working with a bank, you may want to look into taking over the existing mortgage. Some banks will waive closing costs or reduce the interest rate on the mortgage if someone assumes it at closing.

Once you've wrapped up the closing process, the home is yours to enjoy. You may need to repair some of the structure or even make minor repairs. Furnishing your new home and settling in may be one of the most satisfying times in your life.

If you have any questions about buying real estate please call us at 707-297-6580.