Buying an REO property is different than the typical real estate purchasing process. If the purchase will serve as your personal residence or as an investment property, you should be aware of the unique procedures and criteria involved in such a purchase before deciding on an REO property.

General Information
Our bank foreclosures sell, on average, in 90 days or less. They are priced at a competitive market price. A list price may not be the best price. The seller is looking for competitive offers in order to maximize the sales price. It is not unusual to have more than one offer at the same time and you will usually be notified of a multiple offer situation.

Our REO properties sell quickly!  Don't bother wasting time on expensive subscriptions and lists that are behind the curve.  Smart buyers work closely with an REO agent who sees inventory before it hits the retail market.

Prequalification
Before submitting an offer, most lenders require a commitment letter from a direct lender or proof of funds.  Our banks will not negotiate without this documentation.  Most banks require a mortgage commitment within 14 days.  Most banks will not allow the buyer to work on the property prior to closing.  The Healy REO team will work with you in purchasing your REO with an FHA renovation loan that will allow you to fix up the home after closing. If you need information on how to prequalify, please contact us.

Earnest Money
$500 - $1,000: Homes under $100,000 (Some lenders have a $1,000 minimum requirement);
2-3% – Homes over $100,000.

Disclosure
The seller or 3rd party (lender that currently owns the property) has never occupied the subject property. Therefore no disclosure is provided as they are exempt under New Jersey law. A buyer does have the right to request a home inspection but there is no obligation for the seller to make repairs although this may be negotiated. There is always an addendum to the contract which further stipulates conditions for the purchase of the REO property on an 'as is' basis.

Contingencies
We have never had a circumstance where a corporate seller of a foreclosed property would negotiate the sale of a property with a contingency to sell your current residence. Any offer must be made independent of the potential sale of your existing residence.

Are you ready to start the process? If you are interested in purchasing an REO property, contact us to discuss your options. You can also browse some of our Current Listings online.