Interested in REO property or a foreclosure in South Lake Tahoe?


	Just as with any property purchase, your smartest move is to hire a professional real estate agent.

What's an REO?

"REO" or Real Estate Owned are houses which have been foreclosed upon that the bank or mortgage company currently possesses. This is not the same as a property up for foreclosure auction. Tahoe's Choice Real Estate has experience to share with foreclosures and bank owned properties in South Lake Tahoe, California

Tahoe's Choice Real Estate has experience to share with foreclosures and bank owned properties in South Lake Tahoe, California

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. You must also be willing to pay with cash in hand. To top everything off, you'll receive the property entirely as is. That possibly will include standing liens and even current residents that may require eviction.

A bank-owned property, conversely, is a much cleaner and attractive option. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The lender will see to the removal of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from normal disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to reveal any defects of which they are informed. By hiring Tahoe's Choice Real Estate, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Am I guaranteed a good deal when buying a bank owned property in South Lake Tahoe?

It is occasionally assumed that any foreclosure must be a bargain and a chance for guaranteed profit. This isn't always the case. You have to be cautious about buying a repossession if your intent is profit from the sale. Even though the bank is often eager to offload it promptly, they are also motivated to get as much as they can for it.

Tahoe's Choice Real Estate has experience to share with foreclosures and bank owned properties in South Lake Tahoe, California

When pondering the value of REO property, 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. The bargains with money making potential exist, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most lenders have a department dedicated to REO that you'll work with while buying REO property from them. Commonly 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 learn as much as you can about what they know concerning the condition of the property and what their process is for getting offers. Since banks usually 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 terminate 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 presented your offer, you can expect the bank to make a counter offer. Then it will be your choice whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be contending with a process that usually involves several people at the bank, and they don't work evenings or weekends. It's not uncommon for the process of offers and counter offers to take days or even weeks. Tahoe's Choice Real Estate is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.