We Help You Navigate the Bank-Owned Real Estate Purchase Process

REO is one of the ancillary services we provide to add value to the traditional title insurance product line that our customers enjoy. We are equipped to assist with title insurance and closing services for REO (Bank-Owned) property transactions. Our REO Division has a team of professional and knowledgeable individuals to assist you throughout your transaction at the state level or nationwide through our single point of contact philosophy.

Our staff has many years of combined experience in all aspects of title. Our team of escrow officers are devoted to REO transactions and we understand regulations, government programs and the unique challenges of the REO transaction. We provide our customers with quick resolutions to issues that may arise during the course of a transaction.

Our Value Added Services Extend Beyond Closing

Pre-Listing Title Search

A pre-listing search is done prior to the listing/sale of the property so that any potential defects can be resolved prior to the sale of the property. Our team can obtain recorded documents evidencing events in the history of a piece of real property in order to determine relevant interests in ownership and conditions affecting the property.

Title Curative Service

Our title curative team reviews problems discovered during the course of the title search and “cures” these defects such as correcting instruments that are erroneous or ambiguous.

Deed-In-Lieu Solutions

Our experienced team can resolve title issues that surface when the borrower grants the title to the property secured by the mortgage to the lender in lieu of the lender foreclosing the mortgage.

Company Approved Notary Services

Our company approved notaries will meet with clients at a time and place that is convenient to provide notary services on REO transactions.

Property Profile and Comparable Information

A property profile identifies the property address, owner’s name, and legal description or parcel identification number of a particular piece of property. Comparable sales in the neighborhood are used to determine the value of a property by finding recently sold homes that are similar in size, condition, and location.

What You Should Know About Real Estate Owned Properties

When banks foreclose on homes with unpaid mortgages, the lender will first attempt to auction the property at a trustee sale. If the home does not sell at auction, the lender reclaims the property and it becomes an REO or Real Estate Owned property. The home is marketed for sale as-is by a real estate broker. It is often marketed at a discounted, but fair rate.

How to Buy an REO Property

  Identify Properties

Search for REO properties available for sale by contacting lenders directly or working with an experienced real estate agent.

  Practice Due Diligence

Get to know the REO process with the help of a real estate professional so that you know what to expect.

  Obtain Financing

Factors that influence loans for REO home are credit history, intent, and the condition of the home.

  Make an Offer

Negotiate to get the price you want.

  Close on the Property

Our REO Division provides one single point of contact with the comfort of knowing we’ll handle your REO closing quickly and efficiently.


Advantages of Buying a Bank Owned Property

1. No Homeowners: Deal Directly With the Bank

When you buy REO properties, you only deal with the bank. REO properties often are vacant, so home buyers don’t have to deal with tenants reluctant to leave, troubled homeowners or former owners threatening legal action. The bank has no emotional attachment to the home.

2. No Outstanding Taxes

Did the last homeowners stop paying their property taxes?
To entice buyers, the bank may waive any outstanding real estate property taxes due on the property. However, a title search is necessary to confirm what affects the title of a property.

3. Option for a Home Inspection

Unlike properties sold at foreclosure auctions, you can request to see and inspect bank-owned properties before you make an offer. And you absolutely should. REO properties are typically distressed homes, and the former owners are not likely to have kept the place up to date or even move-in ready. Serious work may need to be done.

4. Discounted Prices

Probably the biggest reason that people first get interested in REO properties is because of their below market value prices. But that doesn’t mean you are necessarily going to get a steal. Homes that require too much repair work can quickly become just as expensive as—or even more expensive than—move-in ready, homeowner-sold properties. They’re not all diamonds in the rough. Compare the bank’s asking price with other comparable homes in the area and be sure to get a thorough inspection.

Rely On Our Specialized Team to Guide You Through the REO Process

Every owner, purchaser and beneficiary needs an insured title to protect their interests. Teaming up with the right partners for closing services is no less important. Whether this is your first REO home or fiftieth, our REO Division will be happy to assist you.

Contact us LandCastle Title, LLC at (813) 249-9900


Sources:
Colley, A. (2015, January 22). A guide to reo properties. Retrieved from http://www.realtor.com/advice/guide-reo-properties/
Donofrio, C. (2014, July 14). Must-know financing options for an REO property. Retrieved from http://www.realtor.com/advice/must-know-financing-options-reo-property/
Colley, A. (2014, November 4). Top 4 reasons to buy a bank-owned property. Retrieved from http://www.realtor.com/advice/top-4-reasons-buy-bank-owned-property/