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Frequently Asked Questions
Q: What does "REO" mean?
A: Real
Estate Owned. It's the term the banks use to identify their foreclosure properties.
Q: What is "Foreclosure"?
A: A procedure whereby property pledged as security
for a debt is sold to pay the debt in event of default in payments or terms.
If a homeowner with a mortgage on their property
fails to make payments on that loan, then the lender will file a law suite to take back the property for non-payment
of the loan. This action is called foreclosure.
Q: How is a HUD property different from any other
foreclosure?
A: HUD
homes are FHA-insured loan foreclosures. When someone with a HUD insured mortgage can't meet the payments, the
lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then we sell
it at market value as quickly as possible.
Q: How are foreclosure properties identified on
the MLS?
A: They
are not. They are listed just like any other property. The best way to find them is by working with a real estate
broker who specializes in this kind of home, or by searching the web.
Q: Doesn't the amount owed on the property determine
what the bank will sell it for? Won't the banks sell them for less?
A: No.
When negotiating with an asset manager at a bank for the purchase of a foreclosure, keep in mind that this is a
professional seller. A good asset manager will order appraisals and hire a broker to advise them about the property's
condition and value. Then, they price them accordingly.
Q: Will the banks repair the properties that are
distressed?
A: Sometimes.
The asset manger in charge of the property will confer with his broker prior to listing it to determine if it is
a good candidate for repair or rehab. He will then proceed with a marketing strategy - either "as-is"
or "repaired". Generally, repairs are cosmetic in nature, paint, carpet, regrouting of tile, replace
a torn screen, a cracked window or a mirror in which the silver backing is coming off, and reconditioning of appliances.
Q: How are negotiations handled?
A: Once
you have determined you wish to make an offer on a bank owned home, you instruct a professional broker experience
in Bank Owned Properties to write the offer. The offer is then presented to the Bank Seller. The Bank Seller will
give him a verbal acceptance, counter offer or rejection. All negotiations are conducted verbally until a final
agreement is reached between you and the Bank seller. Once that agreement is reached either the original contract
offer is amended or a new contract is prepared containing the agreed upon terms.
"We Treat your REO Properties As
If They Were Our Own!"
"Your Las Vegas Real Estate Connection!"
We also handle the marketing and purchasing for most
difficult or specialized Real Estate transactions: Properties in Default - Pre-Foreclosure - Bankruptcy - Divorce
- Probate
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