Looking for REO property or a foreclosure in Westlake Village?


	Just as with any property purchase, your smartest move is to hire a professional real estate agent. Should you have any questions about real estate in Westlake Village, California, call me or send me an e-mail.

What's an REO?

"REO" is Real Estate Owned. These are properties which have completed the foreclosure process and are now possessed by the bank or mortgage company. This is different than a property up for foreclosure auction. Keller Williams Realty has experience to share with foreclosures and bank owned properties in Westlake Village, California

Keller Williams Realty has experience to share with foreclosures and bank owned properties in Westlake Village, California

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. The buyer must also be willing to pay with cash in hand. And on top of all that, you'll get the property 100% as is. That possibly will include prevailing liens and even current tenants that may require removal.

A bank-owned property, by contrast, is a much neater and attractive proposition. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The lender will see to the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from standard 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 they are knowledgeable of. By hiring Keller Williams Realty, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in Westlake Village a bargain?

It's frequently thought that any foreclosure must be a good deal and a chance for easy money. This isn't necessarily the case. You have to be cautious about buying a repossession if your intent is to make money off of it. While it's true that the bank is often eager to offload it promptly, they are also looking to minimize any losses.

Keller Williams Realty has experience to share with foreclosures and bank owned properties in Westlake Village, California

When considering the value of REO property, carefully analyze 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 lose money.

Ready to make an offer?

Most lenders have a department dedicated to REO that you'll work with in 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 find out as much as you can about their knowledge about the condition of the property and what their process is for taking offers. Since banks usually sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for unseen damage and withdraw the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

Once you've presented your offer, you can expect the bank to respond with a counter offer. Then it will be your choice whether to accept their counter, or make another counter offer. Your transaction might be settled in a single day, but that's usually not the case. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.