Looking for REO property or a foreclosure in Ft. Worth?


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

What's an REO?

"REO" or Real Estate Owned are houses which have completed the foreclosure process and are now possessed by the bank or mortgage company. This is unlike a property up for foreclosure auction. Bratton Real Estate has experience to share with foreclosures and bank owned properties in Ft. Worth, Texas

Bratton Real Estate has experience to share with foreclosures and bank owned properties in Ft. Worth, Texas

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be willing to pay with cash in hand. To top everything off, you'll get the property 100% as is. That may include existing liens and even current occupants that may require removal.

A bank-owned property, on the contrary, is a much neater and attractive proposition. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The lender will deal with the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from typical disclosure requirements. For example, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that typically requires sellers to tell you about any defects of which they are informed. By hiring Bratton Real Estate, you can rest assured knowing all parties are fulfilling Texas state disclosure requirements.

Are REO properties a bargain in Ft. Worth?

It's occasionally presumed that any foreclosure must be a good deal and a possibility for guaranteed profit. This often isn't true. You have to be very careful about buying a REO if your intent is to make money off of it. While it's true that the bank is typically anxious to sell it soon, they are also motivated to minimize any losses.

Bratton Real Estate has experience to share with foreclosures and bank owned properties in Ft. Worth, Texas

When pondering what to pay for a foreclosure, carefully analyze 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. There are bargains with potential to make money, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

Ready to make an offer?

Most mortgage companies 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 discover as much as you can about what they know about the condition of the property and what their process is for accepting offers. Since banks usually sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for unknown damage and cancel the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.)

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 make another counter offer. Be aware, you'll be dealing with a process that probably involves multiple people at the bank, and they don't work evenings or weekends. It's quite common for there to be days or even weeks of going back and forth.