Interested in REO property or a foreclosure in Port Huron? Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. For more information, just contact me through my site or e-mail me. I'm glad to address any questions you have about real estate foreclosures. What is an REO? "REO" stands for Real Estate Owned. These are homes which have been foreclosed upon that the bank or mortgage company presently possesses. This is unlike a property up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. You must also be ready to pay with cash in hand. And on top of all that, you'll receive the property totally as is. That may involve standing liens and even current residents that may require eviction. A bank-owned property, conversely, is a more tidy and attractive option. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The bank will attend to the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing. Take notice that REOs may be exempt from standard disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that normally requires sellers to make known any defects they are informed of. By hiring Ted Rutkowski Real Estate, Inc., you can rest assured knowing all parties are fulfilling Michigan state disclosure requirements. Are REO properties a bargain in Saint Clair County? It is sometimes thought that any foreclosure must be a bargain and a possibility for guaranteed profit. This simply isn't true. You have to be very careful 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 quickly, they are also looking to get as much as they can for it. Look closely at the listing and sales prices of competing properties in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit. Ready to make an offer? Most mortgage companies have a department dedicated to REO that you'll work with in buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS. Before 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 their knowledge regarding the condition of the property and what their process is for accepting offers. Since banks almost always sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and terminate the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.) Once you've submitted your offer, it's customary for the bank to counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer. Understand, you'll be dealing with a process that probably involves a group of people at the bank, and they don't work evenings or weekends. It's not unusual for the process of offers and counter offers to take days or even weeks. Ted Rutkowski Real Estate, Inc. is accustomed to these situations and will work to ensure there are no unnecessary delays.

We have been in business since 1947. Our experience proves our ability. Gerald E. Rutkowski is a licensed real estate agent and appraiser specializing in all types of real estate. We serve everyone from first time buyers to savvy investors. Over 90% of our business is from repeat customers.