Bank-Owned Real Estate | What you need to know | Boise Area REO's

Posted by Jace Stolfo on Thursday, October 23rd, 2008 at 2:21pm.

Real estate becomes bank-owned after no one bids on it at the foreclosure auction. This is usually because the starting bid is too near, or even above market value.

After the bank puts in their "credit bid," they become the owners of the real estate and the REO department gets it ready to sell. They hire a real estate broker to list the property and generally, little or no repairs are made. They determine the asking price based on appraisals and BPO's (broker price opinions).

There are many bank-owned homes in the Boise, Meridian, and Eagle ID area. You can request bank-owned real estate here. Bank-owned properties are generally priced to sell and can be a very good opportunity to get a deal.

Six things to know if you're thinking about buying bank-owned real estate-

  • If an REO just came on the market or had a price reduction they will usually stay firm on the price.  Once the homes begin to hit that 60 to 90 day's on market they become more aggressive in pricing and negotiation.
  • While each bank is different, most reassess the asking price every 4+/- weeks.  This is good to know if you see a property a little outside your price range.
  • Properties are sold "as is". You can have language in your contract for an inspection and it can be a contingency to the sale, but they are selling it "as is." No repairs or warranties are made.
  • Make sure you have an extremely good home inspector. Homes may have sat through the winter without proper winterizing and you want to make sure you uncover any potential problems.
  • Watch that closing date.  Many banks will require a $100+/- per diem fee for every day your not able to close on time.  Make sure you have a great lender and agent who will help make sure deadlines are met.
  • Because bank-owned real estate is usually a great deal, there's a lot of competition looking at these properties. You need to have a system to be aware of these properties as they come on the market or one of them lowers their price. For bank-owned homes the Boise, Eagle, Meridian, Kuna, or Star ID area, you can sign up for my email alerts so you don't miss the best opportunities.

If you have further questions about REO's don't hesitate to let me know.

Jace Stolfo 208-484-2560 Email Me

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