While there are many great REO foreclosures bargains, not every REO is a sound investment. Doing your homework is key to finding a good deal on an REO. This involves some necessary research on the real estate foreclosure you are considering, but your research will pay off in the long run.
It is wise to learn as much as you can about the foreclosed home and the circumstances that contributed to its distressed property status. The primary sources for this information are county assessors and recorders offices, title companies, your agent, and the owner. You may also want to look for information from unexpected sources, such as asking a neighbor who happens to be outside when you're driving by to look at the property.
You will need to research sales comparables, property history, title status and other data that might affect the value of the property, and Bank Homes Direct offers many of these repossessed home research tools. If you have an agent, they have access to title information and can do much of the research for you. However, if you continue to do research on home foreclosures on your own, your search will be more effective. Plus, you will show your agent that you're a motivated buyer who's willing to put in some work to get a good bargain. Before you close the deal on any property, we recommend that you do a complete title search through a title company.
Lastly, contact the lender or broker and meet him at the property so you can inspect it. Use a good property inspection checklist, and record any damages and deduct the repair estimates from your price.
