Interested in REO property or a foreclosure in Topeka?


	Just as with any home purchase, your wisest move is to hire a professional real estate agent. Should you have any questions about real estate in Topeka, Kansas, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are homes which have been foreclosed upon and are presently owned by the bank or mortgage company. This is unlike a property up for foreclosure auction. RE/MAX Associates of Topeka has experience to share with foreclosures and bank owned properties in Topeka, Kansas

RE/MAX Associates of Topeka has experience to share with foreclosures and bank owned properties in Topeka, Kansas

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. The buyer must also be willing to pay with cash in hand. And on top of all that, you'll accept the property entirely as is. That may involve standing liens and even current residents that may require removal.

A bank-owned property, on the contrary, is a much neater and attractive proposition. 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 prepare for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from normal disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are informed. By hiring RE/MAX Associates of Topeka, you can rest assured knowing all parties are fulfilling Kansas state disclosure requirements.

Am I guaranteed a bargain when buying a bank owned property in Topeka?

It's commonly believed that any REO must be a good buy and an opportunity for easy money. This isn't necessarily the case. You have to be prudent about buying a REO if your intent is make a profit. While it's true that the bank is typically anxious to offload it promptly, they are also motivated to get as much as they can for it.

RE/MAX Associates of Topeka has experience to share with foreclosures and bank owned properties in Topeka, Kansas

When pondering 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 flipping foreclosures. However there are also many REOs that are not good buys and may lose money.

Prepared to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with while buying REO property from them. Commonly the REO department will use a listing agent to get their REO properties listed on the local MLS.

Prior to 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 about the condition of the property and what their process is for receiving offers. Since banks most commonly sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and cancel the offer if you find it. If, as a buyer, you can provide documentation demonstrating 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 submitted your offer, it's customary for the bank to counter offer. Then it will be your choice whether to accept their counter, or make another counter offer. Be aware, you'll be contending with a process that most likely involves several people at the bank, and they don't work evenings or weekends. It's not uncommon for the process of offers and counter offers to take days or even weeks.