Property Q&A in Sacramento>Question Details

Monica Vermi…, Home Buyer in Sacramento, CA

When I find a REO property I like how do I get information, learn about fees associated with it, and move forward with the process of buying?

Asked by Monica Vermillion Maier, Sacramento, CA Wed Apr 11, 2012

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Your real estate agent can help you with that. You should start working with an agent before you fall in love with a property so that they can help you be in the best ready position for submitting an offer. Interview a few agents and see who you feel comfortable with, each of us has a different style and approach, find one you can communicate with and one that answers your questions to your satisfaction.
1 vote Thank Flag Link Wed Apr 11, 2012
Hi Monica,
You will need a Realtor that can search for the properties and assist you with the process. With inventory so low, homes are selling quickly. You want to be sure your Realtor is experienced with closing REO properties, not just with writing offers. The bank will use their own contract and often their own title company. There are exceptions to the title company but not usually the contract. The fees depend on whether the title company is local, if you are paying cash or getting a loan and other factors. It is best to speak with a knowledgable Realtor that can help you get pre-qualified and assist you with navigating the REO process.
1 vote Thank Flag Link Wed Apr 11, 2012
You can call me at 415-705-9405... I am a Sacramento based agent and I can help you move forward with getting this house.

Thank you very much
1 vote Thank Flag Link Wed Apr 11, 2012
Hi Monica;

I was asked the exact same question by some clients in November. They were renting and now live in the same neighborhood in "their house" 2 months later. The most frustrating part about foreclosures is getting the listing agents to answere their phones........What most buyers do not realize is that you will not get a better deal by using the listing agent. Any realtor can help you, but find one that returns your phone calls, answers your questions and shows you houses according to your schedule not theirs. We work for you.

The condo at 2001 Club Center is not on the market yet. It has been foreclosed on (3.18.2012) , but is not yet listed for sale. Most of the units similar to #1126 have been selling in the mid $60,000's. I would be happy to put a watch on this property and the minute it comes on the market I can contact you. Just let me know.

Have a great evening,

Jamie Sachs
Lyon Real Estate
1 vote Thank Flag Link Wed Apr 11, 2012

The property that you were inquiring about looks to be already repurchased. A lot of times the REO properties that appear on Trulia are teasers for Realty Trac, they are hoping you will want to learn more about the property and sign up for their services.

Find your self a good Realtor to work with, get prequalified with you bank or a local mortgage broker. Then make sure the Realtor you are working with has the capacity to send you the listing you are interested in daily. The last thing you should have to do is hunt down properties. Fees can be paid for by the seller and that is part of writing a comprehensive offer that is viable to the seller.

Today's market is real competitive, not much supply and a whole lot of demand. Often tiems it is a good idea to work with an REO listing agent as they sometimes have experience with offers that banks accept.

I hope that helps,
1 vote Thank Flag Link Wed Apr 11, 2012
Buying a home is not a simple process much less when the home is bank owned. The first step in buying a home is always knowing how it will be financed. Depending on the financing your using you may not be able to buy a "fixer". It's important to work with an agent that understands the requirements so that you don't get into an escrow, spending money on inspections etc, only to find out the lender won't approve the property without significant repairs. Top agents will know the right questions to ask to avoid those circumstances. Contact me at your convenience and I'll walk you through it.
Mike Schubert
Better Homes & Gardens
DRE# 01894768
(916) 799-8300
1 vote Thank Flag Link Wed Apr 11, 2012

I would start with a knowledgeable Realtor. REO are a different beast. Most don't use the California Real Estate Forms but instead counter with their own forms that protect their interest. A good and experienced agent has seen these addendums and is familiar with them. They will help you determine which fees the bank will pay.

REO's can be a great deal or a headache, but a strong agent will increase your chance of having no surprises and getting a good value for your money.

Best Wishes,

1 vote Thank Flag Link Wed Apr 11, 2012
Hello Monica,

Contact a Realtor.

You will have many responses from here. Call a few to see who you like and go from there. Yes, it's that easy to start. Good luck and happy house hunting!


Feel free to give me a call/email I'm close by and would be happy to help.

Web Reference:
1 vote Thank Flag Link Wed Apr 11, 2012
Banks that foreclosed on homes list the property with a Realtor just like any other seller. Some homes/condos that are in default show up on public sites, like Trulia, but my not truly be foreclosed on yet.
The best way to buy a foreclosure is to work with a Realtor who can keep a daily eye on the Metrolist for you, and get you out to see property as soon as it comes on the market.
Sales are swift in the market right now, and you have to be ready to shop and write offers.
If you are paying cash, your fees will be very minimal in addition to purchase price.

Hope that helps, good luck in your search!
1 vote Thank Flag Link Wed Apr 11, 2012

If you find one, just call on it. If it is a Fannie Mae REO, you can get pre-approved on the HomePath program if you like. This is a no-appraisal, no mortgage insurance quick close program where you can close in ten days.

I would recommend getting pre-approved first if you are not buying with all cash. To that, I would be honored to help you in any way that I can. Rates are at an all time low; values are very low as well and there are many great buys out in out market place. For me however, with this multiple offer environment, I highly recommend getting pre-approved first. I am really finding a big disparity in the offers accepted with strong approval letters vs. those that are well...not so strong.

The approval process is relatively straight forward and my goal is to get you approved through underwriting (as opposed to just running you through an automated approval engine such as DU for Fannie Mae or LP for Freddie Mac). Once you are approved through underwriting (which we do right in our decentralized office in Roseville), you literally become an "all-cash" type of buyer and you are in a much better position to get your offer accepted.

I hope that helps. As always, if you need anything, please feel free to reach out via email or cell. I strive to always answer my calls and follow that up with a great experience.

Great question by the way! :)
0 votes Thank Flag Link Thu Apr 12, 2012
HI Monica --
I believe, there are already many good answers here.
If you need any help with a property in elk grove, let me know.

Best of luck with your home search,
James Tan
0 votes Thank Flag Link Thu Apr 12, 2012

Buying an REO is a little different than a normal transaction as you've been told by some previous folks.

But it's not much different. The "fees" to buy any property are going to be pretty much the same... You'll pay loan fees if you are financing it and that doesn't change. A Bank/REO deal might see them try and shift some of the normal closing costs a Seller might pay over to your side, but that's the way it is these days. It's not a deal killer though

The Real Estate person you decide to work with can find out just about all the information you'll need.. The only real big difference from a "normal" sale will be the take it or leave "as is" issue that comes with a bank owned deal.

Anyway... I hope this helps and good luck

Make it a great day...
0 votes Thank Flag Link Wed Apr 11, 2012
By the way...Monica, Ed is a very good realtor serving the greater Sacramento area. If there is a dime on the table, chances are Ed will get it for you.
Flag Thu Apr 12, 2012
You did well Monica. Eager real estate professionals asking you for your business, and eager to be at your service.
As for fees, a sample of something you should be aware of: The escrow company chosen by the REO seller will charge additional fees (known as garbage fees) against the buyer that would not be charged in a traditional sale. Extra charges against the buyer occur in short sales too.
On the positive side, many agents still will not charge you directly for commission, as that is routinely paid from the sellers closing costs even in most distressed sales.
0 votes Thank Flag Link Wed Apr 11, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
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