REO Questions

Asked by Dave, Buckeye, AZ Mon Jan 17, 2011

Would someone know the additional costs a buyer should consider before making an offer on a REO (taxes, fees, agent commission etc?)
Also, what agency does Citi-financial use for listing REO's in Carbondale, il. ?
Thank you.

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4
Ranj Mohip, Other Pro, Chicago, IL
Mon Jan 17, 2011
Each bank uses various realty companies to list their REO properties. Every bank has its own contract. Usually, the seller is still responsible the commission on an REO. Taxes, recording fees, and transfer taxes can be paid by either the buyer or seller. Put in your best offer--the seller will send an addendum if they want to move forward. Everyone's responsibilities are laid out in those documents.

The information in this answer provided by Attorney Ranj Mohip is general information and is not intended as legal advice, nor does the attorney intend to create an attorney-client relationship with any reader by answering this question or otherwise contributing as a member of Trulia.com.
2 votes
Suzanne Hami…, Agent, Orland Park, IL
Mon Jan 17, 2011
Dave -

For most REO properties, the transaction is very much the same to any other transaction. As the buyer, you are not responsible for commission, taxes or anything to do with selling the property. Any buyer can expect the fees for an inspection(s), lender (vary), title insurance, attorney, and various other closing costs. With any transaction, but especially with a bank purchase, using an agent is a good idea. Banks can be very particular about contracts and sometimes required follow up with the listing agent. A buyer' agent has no cost to you and can help.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Jan 17, 2011
Ask your lender for a Good Faith Estimate and they will give you the costs to borrow. You will also need to pay an attorney or title company, whichever you use there to close the purchase. The lender will likely require an appraisal and survey, but the good faith will include all that.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Mon Jan 17, 2011
Dave;
Some REOs require that the buyer pay title insurance and documentary stamps. You should clarify this.
Also; some of the title agency/attorney fees to close the transaction can be more costly than privately owned sales. Before making an offer you should find out what the closing costs to you would be.
Web Reference:  http://www.321property.com
0 votes
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