Buying Reo Bank Owned Properties In Orange County

By Author: findcarealestate
Total Articles: 7
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Bank Owned (REO) and Pre-Foreclosure homes represent an incredible buying opportunity in Orange County. Distressed property sales comprised a large percentage of home sales in 2010 and the trend is expected to continue throughout 2011. Investors and traditional home buyers looking for value are increasingly seeking distressed property bargains and this may be your opportunity to gain instant equity in your home purchase. The majority of buyers that I work with are primarily interested in this market niche.

So what is an REO property? REO stands for “Real Estate Owned” or Bank Owned property and results from the bank or lender foreclosing on a property. In some instances the bank will sell the property at a legal foreclosure sale on the “courthouse steps”. However, in many cases, the bank will add the property to its bank owned inventory and list it for sale in the MLS. For most buyers, this is your opportunity to find a great REO at a bargain price.

It is important to understand that banks are not fundamentally in the business of selling property and look to dispose of REO’s as soon as feasibly ...
... possible. As a result, REO’s are typically priced below market value to sell them in a reasonable timeframe. While there are plenty of stories of how a buyer bought a home at a huge discount, this is generally not the case. In Orange County areas where real estate is in demand such as San Clemente, Dana Point, Laguna Niguel, Laguna Beach, Mission Viejo, Coto De Caza, etc., a realistic discount to market value may be 10-15%.

According to RealtyTrac, 25% of all homes sold across the country in the 3rd quarter of 2010 were either short sales or foreclosures. So chances are that if you looking to buy property in Orange County, you will encounter an REO. As an example, in San Clemente’s popular Talega neighborhood, there are currently 8 REO properties listed for sale out of 104 active listings. Most importantly, if you want to buy the next great REO value you need to be ready to move fast! Many REO listings receive multiple offers within hours of being listed on the MLS.

If you are serious about finding an REO bargain you need to ensure you are prepared as this market area is extremely competitive. The following keys to success should help you in finding your REO bargain property:

* Hire the “Right” REALTOR® – be sure to hire a buyer’s agent/broker who specializes in buying distressed properties and REO’s. Our brokerage will ensure you receive REO listings the second they come on the market and ensure you structure your purchase agreements in the most beneficial manner.
* Get Financing in Place – it is extremely important to show that you are well qualified – all cash offers are highly desirable but not necessary. Get preapproved for a mortgage and ensure that you can verify funds for the down payment, closing costs, and reserves.
* Limit Contingencies – more often than not REO’s properties are sold as is. It is important to do your homework and not submit a long list of contingencies that the bank will not accept.
* Be Ready to Buy – work with your REALTOR® to know your market area and when the right REO opportunity presents itself be ready to buy.

If you looking to buy an Orange County REO, contact me today and let’s get started. I can be reached at 949.500.0484 or visit http://www.findcarealestate.com/orange-county-foreclosures/ to start your REO property search. Registration on our website is not required but is highly recommended as you will be able to save your custom property searches and receive email notifications as new REO listings come on the market.

For more Detail:

Dana Point Real Estate

San Juan Capistrano Real Estate

Aliso Viejo Real Estate