Looking to buy an REO or foreclosure property in the Estes Valley?
While rare in the Estes Valley, they occasionally occur. Contact me and I’ll be glad to update you on current opportunities and any in the foreseeable future.
A Few Facts About Estes Real Estate Owned (REO) & Foreclosure Properties.
"REO" stands for Real Estate Owned. These are properties that have gone through foreclosure and are presently possessed by the bank or mortgage company. This differs from real estate up-for-foreclosure auctions. Again, both types of properties are rare in the Estes Valley at this time. For example, in 2015, there were three in Estes, two in Drake and one in Pinewood Springs.
When buying 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 prepared to pay with cash in hand. Finally, you'll accept the property completely “as is.” “As is” may involve standing liens, poor maintenance etc., so a lot of research, including getting a professional inspection, and estimates for all repairs—is advised. I can lead you to the resources that can be most helpful in each particular circumstance so that you can make informed decisions.
A bank-owned property, on the other hand, is a much neater and attractive deal. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The lender will take care of the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing. However, diligent research and fact-finding are advised here, too.
Are REO Properties A Bargain in Estes Park?
It is commonly presumed that any REO must be a good buy and offer the possibility of guaranteed profit. This simply isn't true. You have to be prudent about buying a REO if your intent is to make money off of it. While it's true that the bank is often anxious to offload it fast, they are also looking to get as much as they can for it.
I will look closely at the listing and sales prices of competing properties in the neighborhood when assisting you in your exploration of an REO or foreclosure property. And I can help you spot and factor in any repairs or upgrades necessary to prepare the house for resale or moving in. It is possible to find REOs with money-making potential, and many people do very well buying and selling foreclosures. However, there are also many REOs that are not good buys and not likely to turn a profit.
Time To Make An Offer?
Most lenders have a department dedicated to REO that you'll work with when buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.
Prior to making your offer, we would contact either the listing agent or REO department at the bank and learn as much as we can about their knowledge of the condition of the property and what their process is for accepting offers. Since banks usually sell REO properties "as is", it's almost always prudent to include an inspection contingency in your offer that gives you time to check for unknown damage and withdraw the offer if you find it. As is true with any real estate offer, if you can provide documentation showing your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive.
Once you've presented your offer, the bank will generally make a counter offer. Then it will be your choice whether to accept their counter, or offer your own counter to their counter offer. Your transaction could be settled in one day, but that's usually not the case. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. (And they can often take much longer; banks often can afford the luxury of waiting for better offers.) Coldwell Banker Estes Village Properties Ltd is used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.
I am glad to be your eyes and ears in the Estes Valley and alert you to whatever opportunities do arise. Just let me know whatever you’d like to share about what you are envisioning.
If you'd like to hear what some of the people I've helped have to say, click here.