Troy Fowler

An REO (Real Estate Owned) is a property that goes back to the mortgage company after an un successful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.

Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property.

Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.

REO Properties

The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner's association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.

Selling REO's

Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply.

Generally, banks have an entire department set up to mange their REO inventory.

Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter offer.

Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like "subject to corporate approval with 5 days."

Property Condition

Banks always want to sell a property in "as is" condition. Most will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the point. They will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs.

Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.

Even though you agreed to "as is," always give the bank another opportunity to make repairs or give you a credit after you've completed your inspections. Sometimes they ‘ll re-negotiate to save the transaction instead of putting the property back on the market, but don't take it for granted.

Banks are increasly panting with auction houses to offer multiple properties though the auction process. Depending on the property, location, condition, numbers of bidders etc. This is an excellent alternative to finally great deals in purchasing real estate.

We work closely with the real estate community and focus on both traditional and auction sales alike. We are constantly looking for real estate professionals to form alliances with.

Our commission splits and shared cooperation with Realtors enable us to create strong partnerships to promote the sale of real estate through the auction process.

For more information please contact Troy Fowler Lic. Real Estate Auctioneer #AU3595 & Lic. Real estate Broker @ 305 2076 0349 or go to www.Auction-Generation.com

In today's slowing real estate marketplace, having the option to spotlight your property and maximize visibility is a critical benefit to getting it sold. It is, by far, the best possible method of attracting as many possible buyers on a single day and using a competitive bidding process to achieve the highest possible sale price.

Buyers act on your schedule by complying with the terms, conditions and sale date of the Auction. They are committed to sale on a specific date, therefore, they conduct their due diligence in advance and are prepared to bid on the day of the sale. Closings typically never exceed 45 days beyond the sale/auction date, offering you a complete timeline from the minute you agree to move forward.

Whether your property has been on the market longer than you expected, you wish to avoid a long drawn out sales and negotiation process, or are just ready to make that move that will enable you to move forward on your schedule, Auctions are vastly becoming the sales method of choice.

We work closely with the real estate community and focus on both traditional and auction sales alike. We are constantly looking for real estate professionals to form alliances with. Our commission splits and shared cooperation with Realtors enable us to create strong partnerships to promote the sale of real estate through the auction process.

See our next auction at www.Auction-Generation.com (3% Broker Participation).

Personal Administrators, Estate Executors and families of deceased relatives face many challenges when dealing with the sheer number of tasks associated with settling someone's estate.

If you are in the process or about to begin the estate settlement process, the challenges of managing the sale of real estate in today's market can be particularly challenging. It often requires a number of responsibilities such as the physical aspects of sorting through, moving and disposing of assets, prior to, or in conjunction with, the sale of the property.

Auctions are increasingly playing a vital role as a means to efficiently maximize the disposition of assets and assisting in the estate settlement process

Additional areas of possible consideration for the Personal Administrator include:

• Preparing the property for sale
• Selling the property
• Deciding what to keep
• Who gets what

As a Certified Estate Specialist, our team has advanced education in exactly how to deal with the setting of estates, from working with family members to dealing with lawyers and accountants. Families take a lifetime to acquire and maintain their assets. It can take only hours to dispose of those assets. Make sure you seek out a Certified Estate Specialist so that all aspects of the settling of the estate can be handled appropriately to the benefit of estate executors.

Certified Estate Specialist are accustomed to dealing with other professionals, such as CPA's, tax attorney's, financial planners and family lawyers. They are familiar with the legal requirements and restrictions in their geographic areas, and will use their knowledge to bring the greatest return to those involved in the sale.

For more information about Estate/Probate & Auction call Troy Fowler lic. Real Estate Auctioneer & Lic. Real Estate Broker(#AU3595, #AB2717, AARE, CES) at 305 206 0349.

For the Seller, these benefits can include:

• Provides a proactive alternative to traditional selling methods
  
• Choosing an acceptable selling price.
  
• Accelerated and enhanced marketing that stands out and attracts potential buyers
  
• Creating a energetic environment and marketplace that encourages potential buyers to bid
  
• Choosing your date of sale
  
• Receiving numerous bids from pre qualified/pre approved buyers.
  
• Satisfies need to sell quickly
  
• Eliminates drawn out and often tricky negotiations
  
• Creates an environment for "Getting the deal done!"

For the Buyer, these benefits can include:

• Motivated sellers
  
• Properties that have been pre-qualifed with seller and other inspection companies so buyers understand condition of property etc. before making there bid.
  
• Having the opportunity to bid on other belongings including home furnishings etc. that the seller may wish to include in the sale of the property.
  
• Choosing the best price that works for you and avoiding a complex negotiation process that often unravel a deal altogether.
  
• Purchasing a property that is often priced lower than other comparable properties.

Call troy Fowler for more information about the auction method 305 206 0349 or visit www.Auction-Generation.com and watch a free video presentation.