Making an offer on REO property or a foreclosure in Myrtle Beach?


	Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. If you have any questions about real estate in Myrtle Beach, South Carolina, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are houses which have gone through foreclosure and are now held by the bank or mortgage company. This is not the same as a property up for foreclosure auction. New Wave Real Estate has experience to share with foreclosures and bank owned properties in Myrtle Beach, South Carolina

New Wave Real Estate has experience to share with foreclosures and bank owned properties in Myrtle Beach, South Carolina

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be willing to pay with cash in hand. Finally, you'll accept the property 100% as is. That possibly will include existing liens and even current denizens that may require expulsion.

A bank-owned property, conversely, is a more tidy and attractive transaction. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The bank will deal with the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from typical disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to make known any defects of which they are knowledgeable. By hiring New Wave Real Estate, you can rest assured knowing all parties are fulfilling South Carolina state disclosure requirements.

Am I guaranteed a good deal when buying a bank owned property in Myrtle Beach?

It's sometimes assumed that any foreclosure must be a good deal and a possibility for easy money. This isn't necessarily the case. You have to be very careful about buying a repossession if your intent is profit from the sale. While it's true that the bank is often eager to sell it soon, they are also motivated to minimize any losses.

New Wave Real Estate has experience to share with foreclosures and bank owned properties in Myrtle Beach, South Carolina

Look carefully at the listing and sales prices of comparable properties in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well buying and selling foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most mortgage companies have staff dedicated to REO that you'll work with when buying REO property from them. Commonly the REO department will use a listing agent to get their REO properties listed on the local MLS.

Prior to 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 getting offers. Since banks usually sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've submitted your offer, it's customary for the bank to make a counter offer. From there it will be your choice whether to accept their counter, or make another counter offer. Realize, you'll be dealing with a process that generally involves several people at the bank, and they don't work evenings or weekends. It's not unusual for the process of offers and counter offers to take days or even weeks. New Wave Real Estate is accustomed to these situations and will work to ensure there are no unnecessary delays.