Bank-owned homes, also known as REO homes (real estate owned), offer advantages over foreclosures. What distinguishes the REO home is that it has gone through the foreclosure process where no one was successful in bidding on it for purchase.
Why buy an REO from Chase?
- REOs are usually listed on the FMLS/MLS, so they’re easily searchable
- REOs often include the appliances
- REOs will sometimes provide an allowance for certain repairs by the lending bank
- REOs are ordinarily improved to at least a salable condition whereas a foreclosure can be all over the board
- REO homes can be inspected prior to contract unlike foreclosures at auction
- Banks that own the REO property will sometimes provide better financing deals than they would with traditional properties
- REO homes will have all liens against it removed and the taxes will be paid
Contact an Chase REO Listings Agent
Once you have decided to purchase a real estate owned property there will be a number of things to find out before making any offers. The first and most obvious is deciding where you’d like to purchase the property. Every area has its own rent rates, standards of living and specific characteristics. Hopefully by this point you have an idea for where you’d like to invest. If not that is ok but more time will have to be put aside making the purchase area decision.
Speaking to a Washington Mutual Bank REO or Chase REO agent in any given market will expose some very important insights. The more you can learn before handing an offer over to an REO Listings agent the less risk you will face. There is inherent risk to investing but it does not have to be risky. Numbers don’t lie so study them for every property that looks interesting.
Here are some questions to ask an REO Listings agent when you see a for sale sign:
- Was this an investment property?
- If so, what were they charging for rent?
- What is the vacancy rate?
- What were the average annual maintenance costs?
Remember, banks are not in the home buying and home selling business, so they want to get rid of them quickly. REO homes provide opportunity to the diligent buyer.
If you would like additional information or would like to see which homes currently on the market, visit Chase Bank’s REO Portal for all the listings in your area.