If you’ve decided to include distressed properties in your home search, chances are you’ve heard of several types including foreclosures, short sales, and bank-owned or real-estate owned homes. It’s possible to get a great deal on distressed properties, but REO properties, in particular, come with some unique perks. Check out the following reasons to consider including this type of property in your housing search.
What’s a bank-owned property?
Bank-owned properties, also known as real estate owned properties (REOs), are homes that have gone through a foreclosure but didn’t end up selling at auction. After this happens, ownership of the home reverts back to the mortgage lender.
Why should consider this type of housing?
- No homeowners to deal with– Because an REO is owned by the bank, you will be dealing directly with the bank when you buy a bank-owned property. So, since the seller is the lender, you can easily negotiate with the bank on some of the closing costs.
- No outstanding taxes to pay
Usually, the bank will always waive any outstanding property taxes that the last homeowners stopped paying for in order to attract home buyers. - Option to request a home inspection
Properties that are sold at foreclosure auctions do not have the choice of requesting a home inspection before closing a deal. With bank-owned properties, this is not the case. It’s crucial to ask for one before purchasing a REO since they usually need repairs and upgrades. - Can be sold at below-market prices
Bank-owned properties can be sold at discounted prices with great advantages, such as low down payments and low-interest rates. This doesn’t guarantee you’re going to get a great bargain, however. Depending on the work that needs to be done, you may end up paying as much as a traditional sale.
Are you consider purchasing an REO property, the first thing you want to do is find a pro who’s experienced with these types of transactions. At Metrowest we specialize in distressed property sales – give us a shout today and let’s start the process!