6720858879_7950757fffAs a Burlinton County, NJ realtor I am here to offer you an abundance of properties that exist in the forty municipalities in Burlington County. They are all unique and offer a wide variety of housing and lifestyle options.

No matter if you are finally settling into the area or are new to Burlington County, you will find the right home for you even if it is a real estate owned property.

A real estate owned property or REO a property that is owned by a lender whether it be a bank, government agency, or government loan insurer after it has unsuccessfully not been sold at a public foreclosure auction.

The beneficiary at the auction will typically set the starting bid at least what is owed on the property. Because this is normally higher than the value of the property on the market, nobody bids on it. The beneficiary will then legally repossess the property and list it in their books as a REO property and categorize is as an asset (non-performing asset).

The Best Burlington County Real Estate Agent

As the best Burlington County real estate agent, I can give you the information you need on REO homes.

Before the home is even foreclosed on, it will go into distress because the borrower or homeowner has failed to meet mortgage payments. The beneficiary will then want to determine the equity on the home.

One of the most popular ways a beneficiary will gather the equity information is by obtaining a Broker's Price Opinion (BPO) or ordering an appraisal. Based on the amount of the equity, the bank will decide if there will be a short sale on the home if the homeowner has requested it. If there is no short sale, the beneficiary will go on with the foreclosure process. If the home doesn’t sell at a short sale or auction, it will become a REO property.

When the bank has bought the property at a public foreclosure auction, the property reverts back to the bank and becomes a bank-owned REO property. Anyone can buy these properties.

When the beneficiary repossesses the property and turns it into a REO, they will then go about selling it on its own or with the help of a REO Asset Manager. Liens and debts will be removed by the beneficiary so it can be sold to the public either through future auctions, direct marketing through a real estate broker, or by itself.

These properties are normally not in the best conditions as other homes and may need repairs and maintenance to maintain upkeep laws and be more appealing when it is for sale. This is usually the responsibility of the mortgage servicer and the service is often provided by a specialized property preservation company. They will take care of changing the locks and boarding up the home, debris removal, property maintenance, and rehabilitation.

When purchasing a REO property, there are three ways people are able to do it:

  1. In the first phase of a default and before the public foreclosure auction takes place, lenders and homebuyers can purchase the property.
  2. At a public foreclosure auction, an investor can purchase the property.
  3. If no one bids at the auction and the bank repossesses the property, it can be purchased from the bank or lending institution.

For some, it may take more to convince them that a REO home is right for them. They can be work, but they are a better investment for some families. There are four big benefits to going with a REO property.

The first advantage is that you will not have to deal with any homeowner. The only people you are going through are the bank. For you, this means a couple of things. First, you do not have to worry about kicking people out of their home because there should not be anybody there. Secondly, because the bank has no emotional attachment to the home, it will be easier to negotiate on a price.

The second advantage is no outstanding taxes. If the previous homeowner was not paying their property tax, you shouldn’t have to pay it off. The bank should waive these fees and you will be good to go. If you want to be safe, you can also do a title search on the property which is recommended anyway.

The third advantage is the option for a home inspection. If you went to the auction of the property, you are bidding without the chance to really look at the home to see everything that’s wrong with it. Buying from the bank, you are able to request the time to look and inspect the property. This saves you from any surprises before you buy the home and get yourself into a bad position.

The last advantage is the discounted prices. The prices for REO properties are lower than market value. This doesn’t mean you are getting a steal because of the work you will have to put in, but it is cheaper than buying a new home for market price.

When investing in a REO property, it is always best to have a professional and experienced realtor. We know the business and we know how to negotiate. What you think is a great price in negotiations may not be. We will give you the true price and try our best to get it.