Looking for REO property or a foreclosure in Woodbridge?

Savvy consumers will turn to a seasoned pro when considering a foreclosed property. Should you have questions about real estate in Woodbridge, Virginia, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are homes which have been through foreclosure that the bank or mortgage company now possesses. This is not the same as a property up for foreclosure auction. Century 21 New Millennium has experience to share with foreclosures and bank owned properties in Woodbridge, Virginia

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 willing to pay with cash in hand. And on top of all that, you'll accept the property completely as is. That possibly may consist of prevailing liens and even current denizens that need to be put out.

A bank-owned property, conversely, is a much cleaner and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally plan 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. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that ordinarily requires sellers to make known any defects they are informed of. By hiring Century 21 New Millennium, you can rest assured knowing all parties are fulfilling Virginia state disclosure requirements.

Are REO properties a bargain in Prince William County?

It is frequently believed that any foreclosure must be a bargain and an opportunity for easy money. This isn't always true. You have to be prudent about buying a repossession if your intent is profit from the sale. While it's true that the bank is usually anxious to sell it promptly, they are also motivated to minimize any losses.

Century 21 New Millennium has experience to share with foreclosures and bank owned properties in Woodbridge, Virginia When considering the value of 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. There are bargains with potential to make money, and many people do very well buying and selling foreclosures. Still there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most lenders have staff dedicated to REO that you'll work with in buying REO property from them. Usually 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 what they know about the condition of the property and what their process is for receiving offers. Since banks usually 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 unseen damage and cancel the offer if you find it. As with making any offer on real estate, providing documentation showing your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've submitted your offer, it's customary for the bank to respond with a counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer. Your deal could be final in one 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. Century 21 New Millennium 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.

Looking to Buy?

Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.

Your Information
Some Details