Interested in REO property or a foreclosure in Peoria?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional.

What is an REO?

"REO" is Real Estate Owned. These are houses which have completed the foreclosure process and are currently possessed by the bank or mortgage company. This is unlike a property up for foreclosure auction. Jim Maloof Realtor has experience to share with foreclosures and bank owned properties in Peoria, Illinois

Jim Maloof Realtor has experience to share with foreclosures and bank owned properties in Peoria, Illinois

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 prepared to pay with cash in hand. Finally, you'll get the property 100% as is. That might include prevailing liens and even current occupants that may require eviction.

A bank-owned property, on the other hand, is a more tidy and attractive deal. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will see to the elimination of tax liens, evict occupants if needed and generally organize 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 Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to disclose any defects of which they are aware. By hiring Jim Maloof Realtor, you can rest assured knowing all parties are fulfilling Illinois state disclosure requirements.

Am I assured a good deal when purchasing a bank owned property in Peoria?

It's sometimes presumed that any foreclosure must be a good buy and a chance for guaranteed profit. This isn't necessarily true. You have to be very careful about buying a REO if your intent is to make money off of it. While it's true that the bank is typically eager to offload it fast, they are also looking to get as much as they can for it.

Jim Maloof Realtor has experience to share with foreclosures and bank owned properties in Peoria, Illinois

When considering what to pay for 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. The bargains with money making potential exist, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and may not be money makers.

All set to make an offer?

Most banks have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will typically contract with a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about what they know concerning the condition of the property and what their process is for accepting offers. Since banks typically sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for hidden damage and retract the offer if you find it. If, as a buyer, you can provide documentation showing 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 holds for any type of real estate offer.)

After you've presented your offer, you can expect the bank to counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer. Your transaction might be settled in a single day, but that's rare. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Jim Maloof Realtor is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.