Looking for REO property or a foreclosure in Washington DC, Arlington or the Metro DC area?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. If you have questions regarding real estate in DC, Virginia or Maryland, call us or send us an e-mail.

What's an REO?

"REO" or Real Estate Owned are properties which have been foreclosed upon that the bank or mortgage company currently owns. This differs from real estate up for foreclosure auction. Coldwell Banker has experience to share with foreclosures and bank owned properties in Washington, District of Columbia

Coldwell Banker has experience to share with foreclosures and bank owned properties in Washington, District of Columbia

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be prepared to pay with cash in hand. And on top of all that, you'll receive the property 100% as is. That could include current liens and even current occupants that may require removal.

A bank-owned property, on the contrary, is a more tidy and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will handle the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

Note that REOs are exempt from typical disclosure requirements. For instance, instead of disclosing that the roof leaks and the basement is wet when it rains, banks are exempt from giving a Property Disclosure Statement. This document usually requires sellers to tell you about any defects of which they are aware. By hiring the Metro DC Houses Team, you can rest assured knowing all parties are fulfilling the state disclosure requirements.

Is REO property in the Washington DC area a bargain?

It's occasionally presumed that any foreclosure must be a good buy and a possibility for guaranteed profit. This isn't necessarily true. You have to be cautious about buying a repossession if your intent is make a profit. While it's true that the bank is usually eager to sell it fast, they are also looking to minimize any losses.

Coldwell Banker has experience to share with foreclosures and bank owned properties in Washington, District of Columbia

When contemplating what to pay for a foreclosure, carefully analyze comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. Still 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 when buying REO property from them. Typically 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 discover as much as you can about what they know about the condition of the property and what their process is for accepting offers. Since banks typically sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for unseen damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any real estate offer.)

Once you've submitted your offer, it's customary for the bank to respond with a counter offer. From there it will be your choice whether to accept their counter, or offer a counter to the counter offer. Realize, you'll be contending with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks. Our Team is used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.