Essex CT Foreclosures
Foreclosed upon and bank owned property purchases require the assistance of an experience professional. Please contact us with any questions you have about real estate foreclosures.
What's an REO?Foreclosures in Essex, also referred to as "REO" or Real Estate Owned are houses which have completed the foreclosure process and are currently held by the bank or mortgage company. This differs from a property up for foreclosure real estate auctions in CT.
When buying foreclosures in CT you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. The buyer must also be prepared to pay with cash in hand. Finally, you'll receive the property 100% as is. That may include standing liens and even current occupants that need to be removed.
A bank-owned property, on the other hand, is a much neater and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will take care of the removal of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer of foreclosures at closing.
Note 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 normally requires sellers to disclose any defects of which they are aware. By hiring a Realty3 Essex real estate agent, you can rest assured knowing all parties are fulfilling Connecticut state disclosure requirements.
Am I assured a good deal when investing in an REO property in Essex?It's sometimes presumed that any REO must be a bargain and an opportunity for easy money. This isn't always the case. You have to be cautious about buying a REO if your intent is to make money. Even though the bank is often eager to sell it quickly, they are also motivated to get as much as they can for it.
When you buy Essex real estate and particularly an REO property, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. There are bargains with potential to make money, and many people do very well buying foreclosures. However, there are also many REOs that are not good buys and may lose money.
Time to make an offer?
Most banks have a department dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will frequently hire a real estate agent in CT.
Before making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about their knowledge concerning the condition of the property and what their process is for receiving offers. Since banks most commonly 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 unknown damage and retract 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.
Once you've submitted your offer, it's customary for the bank to make a counter offer. Then it will be your decision whether to accept their counter, or offer a counter to the counter offer. Your transaction could be final in one day, but that's rare. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Realty3 CT Essex is used to working around the schedules of this type of Essex real estate seller and will do everything possible to ensure there are no unnecessary delays.
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