When a property is foreclosed, either through nonpayment of property taxes or by not making mortgage payments, everybody suffers. REO (for 'real estate owned') is a term used when the bank regains ownership of a property. Some real estate brokers specialize in selling these foreclosed properties to both investors and owner occupants. As a side benefit, the county's tax coffers are a little fatter when a property owner pays applicable fees and taxes.
"It's important to work with someone who's familiar with the foreclosure process and who works directly with the banks who own foreclosed houses" said a local REO broker active in the Metro Detroit market.
According to a recent article in MSN Money, "One of the best places to invest is in foreclosures and bargain residential real estate."
Why Buy Foreclosed Properties?
In troubled real estate markets, properties can often be purchased for bargain prices because the owner is 'motivated' and no longer wants to own a property. Banks are generally anxious to avoid the carrying costs associated with holding on to a vacant house and all the headaches that go with it. Vandals break in, basements flood, power lines fall, dead trees topple over... you get the picture. For the savvy buyer, this can be a golden opportunity.
Realistically, the bank wants to maximize the amount they can get when they sell a house. Make no mistake about it, the bank's objective is not to "give the house away". That's where a real estate broker earns their keep. If familiar with bank policies and accustomed to working with the 'red tape' associated with buying these foreclosures, a real estate broker can make all the difference between a frustrating hoopla filled headache or a smoothly functioning deal.
Jan W. Bond-Associate Broker, Bond Realty LLC
Licensed real estate agent since 1985, licensed real estate broker since 1987. Member Detroit Association of Realtors, Michigan Association of Realtors, and National Association of Realtors. Member-National Real Estate Network. Bachelor of Science, Business Administration, Wayne State University; Master of Labor and Industrial Relations, Michigan State University. Former Captain, United States Army Reserve, former Human Resources Specialist, Ford Motor Company.Mr. Bond is a lifelong Detroiterand can be reached by email at janwbond@bondrealty.net or visit his website at http://www.bondrealty.com
Source: www.isnare.com
