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Bank Owned Properties
Foreclosures are on the rise and so is the number of foreclosure investors. Las Vegas is a Mecca for real estate speculators and investors, and interest in buying bank owned properties here has never been higher.
Because of all this interest and activity, there is a lot of information floating around out there -- some of it accurate and reliable, most of it for sale at premium prices. You can purchase supposedly proprietary lists of bank owned properties, get the inside scoop on sales to come, even get a rock solid forecast of how much return you'll get on your investment. It seems easy -- just write a check or two and become a rich bank owned property investor in Las Vegas.
You won't be surprised to hear that it's not that easy. There's no "Secret" for sale that will make you millions in repossessed real estate in Las Vegas. It takes the guidance of an actual human being -- a Realtor with knowledge of the Las Vegas real estate landscape -- to guide you toward the good investments and steer you from the bad.
FAQ - Bank Owned Properties
What exactly is a REO?
When a property is REO it means that it is Real Estate Owned. These properties have already gone through the foreclosure process and are owned by either a bank or mortgage company.
What is the difference between foreclosure auctions and REOs?
In a foreclosure auction you are required to pay the full loan balance, any interest that has accumulated and any other fees that go along with the foreclosure process. You are also required to have cash in hand at the auction. The property will be "as-is", which may include existing liens and sometimes even occupants that need eviction.
A much easier and often more attractive transaction is a REO. The property didn’t find a buyer during auction and is now owned by the bank. The bank will see to the removal of all those undesirable things such as tax liens, evicting occupants and preparing for a title insurance policy to be ready at closing.
This doesn’t mean that there aren’t risks with buying a REO, however. Many REOs may be exempt from letting you know even normal disclosures. Expert advice from a Las Vegas Realtor is invaluable in ressearching and buying REO properties in Las Vegas.
Is it less expensive?
People tend to think that if a home has become a REO that it is an opportunity for the buyer to swoop in and make some easy money. That’s not necessarily the case. Just because the bank is eager to sell the property quickly doesn’t mean that they will take less than the current market value. They have taken a loss on the property and are trying to recoup as much of the expense as possible.
If you are seriously considering a REO here in Las Vegas then make sure that you have closely studied comparable sales in the area and especially in the same neighborhood. Make sure to not overlook any repairs or remodeling that may be required before you would be ready for resale. There are bargains, and many people do very well investing in foreclosed property, but there are just as many that are not likely to turn much of a profit - if any. An experienced Las Vegas Realtor can help.
What steps can I take to protect myself?
The property will almost always be sold in "as-is" condition so it will be more important than ever to make sure you have an inspection contingency in your offer. This will allow you to find out about any hidden damage and terminate the offer should you find something you cannot work with.
Are you ready to make an offer?
Banks often have a specific department that will work with you in order to buy a REO property from them. They normally use a listing agent in order to put the property in the Las Vegas MLS. You’ll want to make sure that you get in touch with the listing agent or the REO department of the bank so that you can find out as much as possible about the property and its condition. This is also a good time to find out what process you must go through to make an offer.
How can I get the bank to pick MY offer?
Offering documentation that shows your ability to pay, like a pre-approval letter from an accepted lender, will make your offer more attractive. Don’t be surprised if the bank makes a counter offer once your offer is received. From that point it’ll be up to you as to whether you accept their counter or want to make a counter of your own. Since you’re dealing with people in a bank, who don’t work evenings or weekends, this process of offers and counteroffers can take longer than usual, stretching on for days and even sometimes weeks.
All this hard work and research can pay off though in the potentially lucrative Las Vegas REO market. Las Vegas real estate agent Steve Harless can help. Contact him at 702-217-1680.
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