Marin County Short Sales and REO’s: What Are They And How Do I Buy One? Part 3
REO’s, or “real estate owned” are properties already owned by the Bank. The foreclosure has happened, the bank owns everything, and now they are trying to sell it.
The good news here is the decision making process, typically, is very fast. Banks will usually tell you within 24 hours whether or not the deal will work.
The bad news is that because the bank really wants to get rid of the property quickly, they will often price it very low to attract multiple offers. How many depends on the property. When 10 La Rosa sold in Larkspur two months ago, it attracted 22 offers! Priced at $789,000, it closed recently at $1,052,000. Others aren’t quite as crazy - 231 Bellam in San Rafael, at $239,000, got five offers within 48 hours.
REO’s are often in cosmetically terrible shape, sometimes filled with old belongings and trash, and may already have all utilities disconnected. People who lose their homes aren’t happy, and sometimes show it. We saw once recently that had a large hole punched through the front door in the shape of someones hand. For some people, viewing homes like this can be a depressing experience.
If you can see through that however, they are often are a terrific deal. As always, get an inspection, pest and contractor’s at a minimum. The bank will rarely negotiate once you are in contract, but it is imperative you understand what you are getting in to.
[…] unknown wrote an interesting post today onMarin County Short Sales and REOâ??s: What Are They And How Do I Buy …Here’s a quick excerptREOs, or “real estate owned” are properties already owned by the Bank. The foreclosure has happened, the bank owns everything, and now they are trying to sell it. […]