Have you ever heard of REO properties listed in Houston Texas? REO as an abbreviation is short for “Real Estate Owned”. But, the actual answer is not as simple as you think. It is a tad bit complicated, so we are going to have to pull a seat because after defining it, we are going to tell you about the steps that you will require to take to purchase a REO properties in Houston Texas. We are also going to talk about how you will manage it, how to hunt for the various types, and the advantages and disadvantages associated with it. So the only question now is, do you feel you are ready to dive into the REO properties world?
Where are REO listings found?
You can easily find a listing by going through a bank. Known banks that offer REO listings include the City National Bank, Bank of America, and People’s United Bank. For a complete listing, you can visit Bigger Pockets.
How does the property work?
If you are told that a property is now officially bank owned, it has definitely gone through foreclosure in Houston, Texas. In the previous post, we told you how foreclosure works. It occurs when a borrower defaults on their mortgage payment. Just so you know, you can easily avoid foreclosure in Houston, Texas, by selling the home fast for cash to a home buying company like ours. You should work hard to avoid foreclosure because it can haunt you for years. It will affect your credit rating and even make it difficult for you to buy another home for years. So cut it by refinancing your loan, selling your home for cash, or coming to terms with your mortgage lender.
Pros of REO
Owned by banks
Trust is a difficult thing to find in the real estate market in Houston, Texas. But if a property is owned by a bank, that means that you will not be scammed. The title will be clear. So it is a safer option when buying in Houston, Texas.
No outstanding Taxes
You will not be dealing with a homeowner or tenant. REO’s do not have outstanding taxes, as they are bank owned.
You can inspect the property
This option is always limited when dealing with a retail seller. But banks have no problem with you checking out the property before closing the deal.
The earnest money
It’s usually no such a huge deal when dealing with a homeowner but when dealing with a bank, you will be asked to pay 1000 dollars which is a lot of money if you think about it.
Proof of funds
There’s no way around this. If you are depending on a loan, you have to get a preapproval letter.
The property’s value will be public knowledge. So if you are looking to sell it in the near future, you will have to prepare yourself for the negotiations.
Do you need more information on REO properties in Houston, Texas? We are a call away.