Looking for REO property or a foreclosure in Chicago? Foreclosed upon and bank owned property purchases require the assistance of an experience professional. If you have any questions regarding real estate in Chicago, Illinois, call me or send me an e-mail. What is an REO? "REO" is an abbreviation for Real Estate Owned. These are properties which have completed the foreclosure process and are presently held by the bank or mortgage company. This is unlike a property up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. And on top of all that, you'll receive the property entirely as is. That might consist of current liens and even current occupants that may require removal. A bank-owned property, on the contrary, is a more tidy and attractive deal. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The lender will see 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 normal disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to reveal any defects they are informed of. By hiring MICHAEL SORENSEN SHORT SALE GROUP @ REMAX CITY CHICAGO ILLINOIS, you can rest assured knowing all parties are fulfilling Illinois state disclosure requirements. Am I assured a bargain when buying an REO property in Chicago? It is commonly assumed that any REO must be a bargain and an opportunity for easy money. This isn't necessarily the case. You have to be very careful about buying a REO if your intent is profit from the sale. Even though the bank is often eager to offload it fast, they are also looking to minimize any losses. Look closely 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 remodeling necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. But there are also many REOs that are not good buys and may not be money makers. All set to make an offer? Most lenders have staff dedicated to REO that you'll work with while buying REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS. Before 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 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 unseen damage and cancel the offer if you find it. If, as a buyer, you can provide documentation proving your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any real estate offer.) Once you've made your offer, it's customary for the bank to respond with a counter offer. From there it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your deal might be final in one day, but that's rare. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.

MICHAEL SORENSEN - REMAX CITY REALTORS - Chicago Short Sale Specialist, CDPE - Certified Distressed Property Expert, Short Selling Homes in Chicago & Suburban Chicago Illinois Short Sales. Looking to Short Sell your Chicago or Northern Illinois Property? Call me at 773-987-8224 Chicago Real Estate Listings, Chicago ShortSale Homes For Sale, Chicago Pre Foreclosure Houses, Chicago Condos, Townhouses, Investment Properties, Luxury Homes, Bank Owned Foreclosed Proeprties, Chicago Foreclosure MLS Listings, New Construction, Waterfront Properties, Horse/ Equestrian/ Equine Properties, Golf Course Properties in Chicago and Suburbs of Chicago and Northern Illinois.

*Information and links contained on this site are provided for informational purposes only and should not be treated as legal advice. Promotional offers advertised here (if any) are good for services through MICHAEL SORENSEN ONLY and not valid through any other RE/MAX Agent or Broker. Each RE/MAX office is independently owned and operated.

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