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Buying Foreclosed or Bank-Owned Property

Posted on in DuPage County Real Estate Attorney

Naperville real estate lawyersPurchasing a foreclosed or bank-owned property can save you a lot of money on the purchase of your home or investment property. However, this is not always the case. Instead, buyers need to be diligent, resourceful, and savvy to decrease the odds of a financial loss. The following information can help you learn more about buying a Real Estate Owned (REO) property, and it explains how an experienced real estate lawyer can assist with the process.

Be a Savvy Home Buyer

Whether you are investing with the hopes of one day making a return on the property, or are planning on making an REO your full-time residence, be a savvy home buyer. Make sure you are pre-approved for a loan or have the cash on hand to smooth the process, and know that some homes (particularly those with significant damage) may be ineligible for certain types of loans. If the property is distressed, an FHA loan may be your best option. Just keep in mind that some buyers might not be eligible for an FHA loan. In such situations, cash may be required.

Get Your Own Appraisal and Inspection

Although the bank may have already conducted an appraisal and inspection of the property, it is important that buyers obtain their own, separate from the bank. Doing so ensures that the buyer is aware of any major issues, and sometimes, separate inspections turn up damage that was not discovered during the bank's inspection or appraisal. Remember: it is critical that you know what you are getting into. Otherwise, you run the risk of financial loss, either through the home purchase price or while trying to make repairs.

Never Go Through the REO Buying Process Alone

While the state does not require the assistance of an attorney while buying a home, the assistance of an experienced real estate attorney is still encouraged. Able to protect your interests, assist you in negotiations, and skilled in navigating some of the most complex homeowner transactions, an attorney can improve your odds of a positive outcome.

Do not take chances with your money or investment property. Instead, contact Stock, Carlson & Asso. LLC for assistance with the purchase of your REO home or investment property. Backed by more than 40 of legal experience, our DuPage County real estate lawyers offer comprehensive and personalized real estate transaction services to meet your needs. Schedule a personalized consultation to get started. Call our offices at 630-665-2500 today.

Source:

http://www.foxbusiness.com/features/2010/12/17/keys-buying-bank-owned-property.html

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