Foreclosure properties

We closed two foreclosure or REO (stands for Real Estate Owned) properties today.  We list properties that have been foreclosed on and sell them for the lending institutions that hold the mortgage.

Buying foreclosure properties is a little different because the seller is a bank and is usually out of state.  It takes time to get responses from the bank and they are usually not big negotiators. 

Both of the houses today were in very bad condition and the bank did not want to fix them up.  They did make some price concessions because of condition, but the buyers understood that they were purchasing the property in "as-is" condition.  That is usually the case with foreclosure properties.  A buyer can still have an inspection, but the seller is not going to fix anything.

Because the banks are out of state, they are typically unfamiliar with our closing practices and can be very unsympathetic if problems arise that call for the closing to be delayed.  We have seen them void the contract rather than sign an extension of the closing date.  On the other hand, we have also seen them extend the closing for several days to a couple of weeks if they thought the deal was worth the wait.

We are thankful that both of these homes closed and they have two new families to fix them up.

5:45 PM - May. 25, 2006 - comments {0} - post comment

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