Green Bay, WI has some terrific deals on REO foreclosure listings right now. Investors/ buyers won’t be disappointed with the affordable home prices available in all price ranges and neighborhoods. All you have to do is drive down the street or check the Internet, and you will find a treasure waiting for you. It is highly recommended that you work with a Green Bay local Realtor to help find the best REO foreclosed homes. It will save you time as well.
What to Know?
Securing foreclosed homes is slightly different than buying a resale home that is a non-foreclosure or a new home from a builder. You have to deal with the bank when purchasing REO foreclosed houses. Expect the process to take a little longer because of the red tape involved with bank loss mitigation departments and asset managers. While some banks handle their own REO foreclosure listings, others have asset management companies taking care of their inventory. All REO foreclosed houses are listed with Realtors. You have to make your offer with a Realtor. If you prefer, you can have your own Realtor represent you instead of the listing agent who represents the bank. Expect the bank to take at least a week to get back to you on your offer. Banks are difficult to deal with on their REO inventories so have your Realtor check out the comparable sale prices first so you know what the home value is that you are trying to secure. Most of the time, REO’s are priced below market value. So don’t expect a low offer to get accepted by the bank. Most REO’s sell close to or at asking price. The reason is the bank has already priced them to sell, and there is not too much bargaining room left. They are good deals because they are discounted. You automatically get a property with built in equity. There is some competition from other investors/buyers so if you find a REO property that you like, you should act on it immediately to avoid a multiple offer situation. In a multiple offer situation, buyers tend to bid up the price in a bidding war. Banks want to close quickly so either have your financing ready or have cash. Banks prefer cash and so do their listing agents because they know you will close the deal. REO’s are generally in bad or poor condition because former owners have either stripped them or just not maintained them very well prior to the foreclosure. Also, you have to figure that most REO properties have been sitting vacant for at least a year because it takes banks so long these days to complete the foreclosure process because there are so many property owners defaulting on their mortgages. All properties are sold in an “as is” condition.
Inspections and Title Insurance
You have the right to inspect an REO property, and you should do so to make sure the property condition meets your budget and expectations. Be sure to negotiate a contract contingency for inspections. This way if the REO home you expect to secure needs too many major system repairs, you have an exit strategy to get out of the deal. Banks don’t generally make repairs, and if they do, it’s usually before they list the property. So when you buy a bank foreclosure, what you inspect is what you get. Your Realtor can recommend a good home inspector and other vendors to you in order to get repair bids. You will receive title insurance during the contract escrow period for your review. You should have an attorney review the title documents for you if notice anything out of the ordinary such as use restrictions located in deeds or any liens or encumbrances. The title company’s job is to do a title search to make sure title is clear to transfer to you. The bank must pay off all liens at or prior to closing including taxes and any homeowner dues and assessments. Future assessments are the buyer’s responsibility. Green Bay REO’s are great bargains if you take your time to find the right one that meets our needs and expectations. Rental properties are in high demand in the area in case you want to rent your REO property out. Investors/buyers should take advantage of securing Green Bay REO’s and short sales right now while prices are so affordable, and there is a large inventory of affordable properties to choose from.