Looking for REO property or a foreclosure in Napa?


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

What's an REO?

"REO" is Real Estate Owned. These are properties which have been foreclosed upon that the bank or mortgage company presently owns. This differs from a property up for foreclosure auction. Heli Sairanen, Broker, Coldwell Banker BOV has experience to share with foreclosures and bank owned properties in Napa, California

Heli Sairanen, Broker, Coldwell Banker BOV has experience to share with foreclosures and bank owned properties in Napa, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. The buyer must also be able to pay with cash in hand. Finally, you'll accept the property totally as is. That possibly will include existing liens and even current residents that may require expulsion.

A bank-owned property, conversely, is a much neater and attractive option. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The lender will take care of the removal of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

Take notice 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 normally requires sellers to tell you about any defects they are aware of. By hiring Heli Sairanen, Broker, Coldwell Banker BOV, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Are REO properties a bargain in Napa?

It's occasionally thought that any foreclosure must be a bargain and a chance for easy money. This isn't always the case. You have to be cautious about buying a REO if your intent is to make money off of it. While it's true that the bank is usually anxious to offload it soon, they are also motivated to minimize any losses.

Heli Sairanen, Broker, Coldwell Banker BOV has experience to share with foreclosures and bank owned properties in Napa, California

Look carefully at the listing and sales prices of comparable homes in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most mortgage companies 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 frequently use a listing agent.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about what they know regarding the condition of the property and what their process is for accepting offers. Since banks most commonly sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unknown damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation demonstrating 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 is generally true for any real estate offer.)

Once you've submitted your offer, it's customary for the bank to counter offer. Then it will be your choice whether to accept their counter, or make another counter offer. Understand, you'll be contending with a process that usually involves a group of people at the bank, and they don't work evenings or weekends. It's not unusual for there to be days or even weeks of going back and forth.