Looking for REO property or a foreclosure in Chicago?


	Smart consumers will turn to a seasoned pro when considering a foreclosed property. Should you have any questions regarding real estate in Chicago, Illinois, call me or send me an e-mail.

What's an REO?

"REO" or Real Estate Owned are properties which have been foreclosed upon that the bank or mortgage company now possesses. This is unlike real estate up for foreclosure auction. Publix Realty has experience to share with foreclosures and bank owned properties in Chicago, Illinois

Publix Realty has experience to share with foreclosures and bank owned properties in Chicago, Illinois

When buying 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. The buyer must also be ready to pay with cash in hand. Finally, you'll accept the property totally as is. That might include standing liens and even current residents that need to be expelled.

A bank-owned property, conversely, is a more tidy and attractive transaction. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The lender will attend to the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from standard disclosure requirements. For instance, in California, banks do not have to give a Transfer Disclosure Statement, a document that typically requires sellers to make known any defects of which they are knowledgeable. By hiring Publix Realty, you can rest assured knowing all parties are fulfilling Illinois state disclosure requirements.

Am I assured a good deal when buying a bank owned property in Chicago?

It is occasionally assumed that any REO must be a good deal and a chance for easy money. This isn't always the case. You have to be very careful about buying a repossession if your intent is make money. While it's true that the bank is usually eager to offload it promptly, they are also motivated to get as much as they can for it.

Publix Realty has experience to share with foreclosures and bank owned properties in Chicago, Illinois

Look carefully at the listing and sales prices of similar homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most lenders have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will usually use a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about what they know about the condition of the property and what their process is for accepting offers. Since banks typically sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unseen damage and retract the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any real estate offer.)

After you've submitted your offer, it's customary for the bank to counter offer. Then it will be up to you to decide whether to accept their counter, or make another counter offer. Realize, you'll be contending with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of going back and forth. Publix Realty is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.