Buying REO property or a foreclosure in Lompoc? Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. If you have any questions regarding real estate in Lompoc, California, call me or send me an e-mail. What is an REO? "REO" is Real Estate Owned. These are houses which have completed the foreclosure process and are currently possessed by the bank or mortgage company. This is not the same as real estate up for foreclosure auction. When buying 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. The buyer must also be prepared to pay with cash in hand. To top everything off, you'll get the property entirely as is. That could consist of standing liens and even current tenants that may require eviction. A bank-owned property, by contrast, is a much cleaner and attractive deal. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The lender will take care of the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing. Note that REOs may be exempt from standard disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to make known any defects they are knowledgeable of. By hiring Century 21 Preferred Realty, you can rest assured knowing all parties are fulfilling California state disclosure requirements. Is REO property in Lompoc a bargain? It's commonly thought that any REO must be a steal and a chance for easy money. This isn't necessarily true. You have to be cautious about buying a repossession if your intent is make money. While it's true that the bank is often anxious to sell it fast, they are also motivated to get as much as they can for it. Look carefully at the listing and sales prices of comparable properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and may lose money. Ready to make an offer? Most mortgage companies have staff 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. Before 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 their knowledge about the condition of the property and what their process is for receiving offers. Since banks most commonly 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 unseen damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation showing your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any real estate offer.) Once you've presented your offer, you can expect the bank to counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Your transaction could be final in a single day, but that's rare. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Century 21 Preferred Realty is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays. Today's Rates: Mtg Loan     Rate   APR 30-yr Fixed 3.87% 4% 15-yr Fixed 3.14% 3.31% 1-yr Adj 2.76% 3.42% * national averages Mortgage Calculator: Sales Price: $ Down: % Interest Rate: % Term: yrs Monthly payment: $ Got a Question? Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.   Your Information *Name: *Email: Phone: Your Question Question: Note: Fields with an * are required * MOL = More or Less

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Data maintained by  Lompoc Board of Realtors may not reflect all real estate activity in the market. Information contained herein has been provided by sellers or other sources and has not been verified by the broker or his agents. Interested persons should independently verify the accuracy of all information.

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