Looking for REO property or a foreclosure in Dallas?


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

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are homes which have completed the foreclosure process that the bank or mortgage company currently owns. This differs from a property up for foreclosure auction. Hinshaw Realty has experience to share with foreclosures and bank owned properties in Dallas, Texas

Hinshaw Realty has experience to share with foreclosures and bank owned properties in Dallas, Texas

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 ready to pay with cash in hand. To top everything off, you'll receive the property totally as is. That possibly could comprise of standing liens and even current occupants that need to be removed.

A bank-owned property, on the other hand, is a much neater and attractive transaction. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The lender will deal with 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.

Take notice that REOs may be exempt from standard disclosure requirements. For example, in California, banks are not required to give a Transfer Disclosure Statement, a document that typically requires sellers to make known any defects of which they are aware. By hiring Hinshaw Realty, you can rest assured knowing all parties are fulfilling Texas state disclosure requirements.

Am I guaranteed a good deal when investing in a bank owned property in Dallas?

It is occasionally presumed that any REO must be a bargain and a chance for easy money. This isn't always the case. You have to be cautious about buying a repossession if your intent is to make money. While it's true that the bank is typically anxious to offload it fast, they are also looking to minimize any losses.

Hinshaw Realty has experience to share with foreclosures and bank owned properties in Dallas, Texas

Look closely at the listing and sales prices of comparable properties 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. It is possible to find REOs with money-making potential, and many people do very well buying 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 mortgage companies have staff dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will usually use a listing agent.

Before 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 about the condition of the property and what their process is for receiving 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 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 counter offer. At this point it will be up to you to decide whether to accept their counter, or submit another counter offer. Your deal could be settled in a single day, but that's usually not the case. 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.