Whether you are a real estate investor who wants to buy and sell houses, in order to make money or an individual simply wanting to find a good deal on a home to be used as your personal residence, lender owned properties might be the answer.
When local or national financially oriented events occur, the residential real estate sector can suffer. When this happens and borrowers are unable to pay their mortgage, lenders are forced to foreclose. These properties are described by the lender as “REO” (Real Estate Owned), on their balance sheet.
Lenders gain no utility from owning and maintaining these properties, so they want to sell them, within a reasonable time and at a reasonable price. Lender owned properties can represent a good buying opportunity, but … make no mistake about this: lenders have no reason to “sell below appraisal” or have a “fire sale”. It makes no sense to give the properties away. Lenders are profit oriented and have every right to expect and receive a fair price.
Recognizing the lender’s objective, however, doesn't mean that a Buyer might not get “a good deal” and here are a few reasons:
1) The lender must sell the property and there is no emotional attachment or financial barrier to selling.
2) Time really is money for the lender and the sooner the property sells, the better. A cash sale, with a quick close of escrow, is the optimum.
3) All lender owned properties are sold “as is”, but this can describe a home that is in near perfect condition through homes which have enormous repair needs. These homes are priced accordingly, including an appropriate margin of risk, for the Buyer.
Rickel Realty has represented lenders, with the disposition of their foreclosed properties, for over 15 years. During most strong economic times, there is virtually no inventory of REO homes available. But during real estate slow downs, as we have now, the REO inventory of homes grows.
Please visit our CURRENT REO LISTINGS. At any given time, we may have no homes available, while at other times there may be numerous properties. Also visit our local inventory of LENDER OWNED HOMES, listed by other Brokers across the valley.
Whether you are looking to buy for your personal use or as an investment, we can help you. If is our property listing, we will represent the Seller. If it is another Broker’s listing, we will represent the Buyer.