Interested in REO property or a foreclosure in Houston, Spring, Katy, Tomball, The Woodlands and surrounding areas in Texas?


	Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. Should you have questions regarding real estate in the Houston Metro and surrounding areas, call us or send us an e-mail.

What's an REO?

"REO" means Real Estate Owned. These are properties which have gone through foreclosure and are now owned by the bank or mortgage company. This is unlike a property up for foreclosure auction. The LaPeer Team has experience to share with foreclosures and bank owned properties in Spring, Texas

The LaPeer Team has experience to share with foreclosures and bank owned properties in Spring, Texas

If you buy 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 ready to pay with cash in hand. Finally, you'll accept the property totally as is. That possibly could include prevailing liens and even current residents that may require removal.

A bank-owned property, on the contrary, is a much cleaner and attractive option. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The bank will take care of the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that typically requires sellers to make known any defects of which they are knowledgeable. By hiring The LaPeer Team, you can rest assured knowing all parties are fulfilling Texas state disclosure requirements.

Am I guaranteed a bargain when purchasing an REO property in Houston or surrounding areas?

It is occasionally thought that any foreclosure must be a bargain and an opportunity for guaranteed profit. This simply isn't true. You have to be very careful about buying a REO if your intent is to make money off of it. Even though the bank is often eager to offload it soon, they are also looking to minimize any losses.

The LaPeer Team has experience to share with foreclosures and bank owned properties in Spring, Texas

Look carefully at the listing and sales prices of competing homes in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most mortgage companies have staff dedicated to REO that you'll work with in buying REO property from them. Commonly the REO department will use a listing agent to get their REO properties listed on the local MLS.

Prior to 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 regarding the condition of the property and what their process is for getting offers. Since banks usually sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and terminate the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

Once you've made your offer, it's customary for the bank to respond with a counter offer. Then it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your deal could be final in a single 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.