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With nearly three years of experience, Debbie Dogrul Associates has a proven track record of selling bank owned properties. Our goal is to provide each bank with exceptional service while also giving potential buyers an opportunity to own their dream home with endless possibilities. Our Bank Owned department has completed more than 100 transactions and is well qualified to assist you in selling your short sale or bank owned home.
What is an REO? In today’s market buyers are finding a large percentage of homes available marketed as REO properties and foreclosures. But many are confused about the difference. An REO property stands for Real Estate Owned. Essentially it’s a property that was foreclosed on, auctioned, and purchased back by the lender. Once the bank has repurchased the property, the previous mortgagee’s loan no longer exists. They are also commonly referred to as “Bank Foreclosures” which may cause some confusion. A foreclosed property is sold at an auction that is preceded by several public announcements. The starting bid includes the loan balance, accrued interest, and any associated fees, liens, and costs for foreclosure. As most minimum bids usually exceed the properties worth, the bank often buys the property and assigns it to an agent to market and sell. There are several benefits to purchasing an REO property rather than bidding at an auction. Perhaps the most important is the financing. While a purchaser at an auction typically pays in cash and closes quickly, an REO buyer has the option to choose from those financing options available for a regular sale. Secondly, even though most REO properties are sold “As-Is”, home inspections are allowed, while the majority of houses in auctions prohibit them. Scheduling your purchase around an auction date can also be stressful and may lead to rushed decision making. Purchasing an REO property allows you the normal procedure time that you would expect with such a large financial transaction. Do not let the fact that a house is being sold as an REO detract from your interest as a purchaser. There is usually nothing suspect with these houses other than those commonly associated with vacant homes and that the previous owner could not afford to pay the mortgage. As banks do not wish to carry them in inventory, they are usually priced to sell at slightly below market value. In many cases, buyers are able to walk in with instant equity after a few cosmetic repairs such as paint and carpet. Short Sale A short sale is the sale of a home in which the proceeds fall short of the mortgage owed. Many lenders will agree to these terms in order to avoid costly foreclosures, and upon closing sometimes forgive the remaining balance. There are sometimes also refinancing or loan modification options available. It is extremely important not to delay if you are falling behind. The pre foreclosure process can move swiftly and the timelines are strict and must be adhered to promptly. It’s vital to communicate any delays to your lender, agent and all parties involved. If you require more information on this topic, please call Debbie Dogrul Associates at 703-425-3582
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