Ken Weaver and Amy Green have had great success working with buyers of bank owned and distressed properties. Just because a property may be bank owned, does not necessarily make it a good value. You need the help of experienced agents to assist in determining what is a good value and to be able to work through the process to your benefit. We have averaged over $5 Million a year is sales and will put that experience to work for you. Most banks operate in a manner that does not make sense to the typical buyer. You need an agent that has been through many of these transactions to get the best value possible in your purchase. You also want to be working with a buyers agent, someone who is working directly for you.
Buying Bank Owned Properties (REO) Everyone has heard of buying repos as the next get rich quick scheme. Again, just because the property is cheap does not make it a great value. However, if a buyer is patient, they can often get a great deal and end up with instant equity in their purchase. Banks do get in the position where they offer some great deals and you need to be working with someone who is constantly looking for these opportunities.
REO vs. Foreclosure An REO (Real Estate Owned) home is a property that ownership has reverted back to the mortgage company after an unsuccessful auction (sheriff sale). Most foreclosed homes do not sell at the sheriff sale or generate bids. The bid levels are still generally higher than the value of the home, which is why they became distressed in the first place.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney’s fees and any costs associated with the foreclosure process. If you are the successful bidder, you receive the property in “as is” condition, which may include someone still living in the property. In Michigan there is typically a 6 month redemption period in which the owner still can occupy the home. This makes buying a home at the sheriff sale a risky move usually. Also, there may be liens against the property.
After the unsuccessful sheriff sale, the mortgage company or bank now owns the property. That is when the 6 month wait happens. Then, after the redemption period is complete, the home will generally get listed by a realtor. Banks rarely sell directly to owners and typically have a group of agents they work with.
REO Properties For Sale The bank now owns the property outright and will typically be responsible for paying off back taxes, liens and possibly making some repairs or getting the home cleaned up, if needed. At that time, it is listed on the MLS and that is where we come in. We will do a market analysis to see which properties are really a good deal. Remember, these properties come "as is", and often do not have appliances, etc. However, we will always recommend writing an offer contingent upon inspections to your satisfaction and can provide a list of companies to do inspections, including septic, well, building, etc. Just because you are purchasing an "as is" property, we can make sure you have the opportunity to perform detailed inspections to your satisfaction.
