Interested in REO property or a foreclosure in NAPA?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. Should you have questions regarding real estate in NAPA, California, call us or send us an e-mail.

What is an REO?

"REO" is short for Real Estate Owned. These are homes which have gone through foreclosure that the bank or mortgage company now holds. This is different than real estate up for foreclosure auction. RD Team Realtors® has experience to share with foreclosures and bank owned properties in NAPA, California

RD Team Realtors® has experience to share with foreclosures and bank owned properties in NAPA, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. You must also be prepared to pay with cash in hand. To top everything off, you'll receive the property completely as is. That could consist of prevailing liens and even current occupants that need to be kicked out.

A bank-owned property, by contrast, is a more tidy and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will deal with the removal of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from typical disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that usually requires sellers to disclose any defects they are aware of. By hiring RD Team Realtors®, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Are REO properties a bargain in NAPA?

It's occasionally assumed that any foreclosure must be a good deal and a possibility for easy money. This frequently isn't true. You have to be prudent about buying a repossession if your intent is to make money off of it. While it's true that the bank is often eager to offload it promptly, they are also motivated to minimize any losses.

RD Team Realtors® has experience to share with foreclosures and bank owned properties in NAPA, California

When considering what to pay for REO property, you need to look closely at 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 and selling foreclosures. But there are also many REOs that are not good buys and may lose money.

Prepared to make an offer?

Most lenders have staff dedicated to REO that you'll work with in buying REO property from them. Normally the REO department will use a listing agent to get their REO properties listed on the local MLS.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about what they know regarding the condition of the property and what their process is for receiving offers. Since banks most commonly sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. If, as a buyer, you can provide documentation showing your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any type of real estate offer.)

Once you've made your offer, it's customary for the bank to respond with a counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Understand, you'll be dealing with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks. RD Team Realtors® is used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.