Looking for REO property or a foreclosure in Ridgeland?


	Investing in a bank-owned property is not something to be taken lightly. If you have any questions regarding real estate in Ridgeland, Mississippi, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are houses which have been through foreclosure and are now owned by the bank or mortgage company. This is unlike a property up for foreclosure auction. Jamie Hanry has experience to share with foreclosures and bank owned properties in Ridgeland, Mississippi

Jamie Hanry has experience to share with foreclosures and bank owned properties in Ridgeland, Mississippi

If you buy 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. The buyer must also be ready to pay with cash in hand. And on top of all that, you'll get the property 100% as is. That possibly will involve prevailing liens and even current residents that may require eviction.

A bank-owned property, on the other hand, is a more tidy and attractive proposition. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The lender will deal with 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.

You should be aware that REOs may be exempt from standard disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to reveal any defects they are aware of. By hiring Jamie Hanry, you can rest assured knowing all parties are fulfilling Mississippi state disclosure requirements.

Are REO properties a bargain in Ridgeland?

It is frequently assumed that any REO must be a good buy and an opportunity for guaranteed profit. This isn't always the case. You have to be prudent about buying a repossession if your intent is profit from the sale. While it's true that the bank is typically eager to offload it quickly, they are also motivated to minimize any losses.

Jamie Hanry has experience to share with foreclosures and bank owned properties in Ridgeland, Mississippi

When considering the value of a foreclosure, 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. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most mortgage companies have staff dedicated to REO that you'll work with while 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 their knowledge regarding the condition of the property and what their process is for getting offers. Since banks almost always sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unseen damage and retract the offer if you find it. As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've submitted your offer, it's customary for the bank to counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer. Understand, you'll be contending with a process that generally involves several people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks.