Buying foreclosure property generally requires you to bid on a property at auction, usually on the steps of a courthouse. The opening bid is set by the bank and is usually the outstanding loan balance plus interest and any fees incurred by the bank (legal etc…).
Thing to consider when buying foreclosures:
At the auction you must have evidence of ability to pay cash.
You can have a number of people bidding against you.
If the property is not vacant, the successful bidder must evict the occupant.
Property not available to be inspected prior to sale and is sold “as is”
Buying REO Properties
If a property does not sell at a foreclosure auction, it reverts back to the bank and becomes REO (real estate owned). The bank does not want to sit on its inventory. Since they did not sell the property for the minimum bid at auction, they will reduce the price and list it for sale with an REO agent.
Things to consider when buying REO property:
All liens are removed against property.
Unlike foreclosures, REO property can and should be inspected.
REO property is vacant, the bank handled the eviction.
REO property might require additional repairs after purchase.
Unless you have direct experience negotiating with banks, you may receive better representation by hiring your own buyer’s agent.
Buyer’s agents have a fiduciary responsibility to protect your interest.
Buyer’s agents do not represent the seller.
Buyer’s agents are paid by the seller.
We specialize in representing our clients in the purchases and sales of single-family residences and income property within the cities of Chino Hills, Chino, Claremont, Corona, Ontario, Pomona, Brea and Diamond Bar. Given the competitive nature of today's real estate market, knowledge is power. We provide our clients with consistent, current and accurate information on the local real estate market that can only come from local, experienced, full time Realtors.
Rick and Rita Rhilinger
Community Partners Realty
(909)606-9946
DRE License 01491660 and 01455474
