Foreclosures

We are THE NUMBER 1 FORECLOSURE SOURCE! What that means to you, the buyer, is that we have hundreds of listings "in-house". This affords you the opportunity to have the first pick of all the best deals in town.

"Knowledgeable, efficient, professional, and energetic"-these are only some of the comments made by clients of ours! All of us at Gavish Real Estate recognize that you do have many choices these days, in regard to your home buying and selling needs. We know that the choices of companies are plentiful, and that selecting a company to assist you with your biggest purchase or sale will be met with great thought. We have taken all the guess work out of the equation for you. When you select us, feel assured that you will be working with the most dedicated, well trained professionals in the field of real estate. Real estate, for us, is more than a job, it is what we do.

At Gavish Real Estate we talk a lot about 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 manage their REO inventory. We also have an entire department set up to manage all of our REO properties!

What is an REO? REO means "real estate owned". This is a term used by the industry to describe properties (assets) that a financial institution has repossessed by foreclosure, a deed-in-lieu of foreclosure or other means. These REO properties are also called "bank owned" or "corporate owned" because the owner of record is an institution instead of a natural person. REO properties have different amenities and are in various stages of age and repair than resale homes. All of these factors influence the price that a buyer and seller are willing to agree on. This is one of the many ways we are able to help. We can check the comparables in the area, so you can see if you are getting a great deal. We know the market-it's what we do! We will guide you through the process so you understand what will occur during each step of your home buying experience.

Below are 7 things to know about the REO Closing process:

The Seller-is an out of state bank. The bank contracts a 3rd party, which represents them in the transaction. All correspondence is done by email. Below are a few more things you should know to help you understand the closing process.
Title commitment-There may be unforeseen lien issues on the title report that will require Escrow and/or Bank Seller to correct before closing.
HOA Demands-Processing time to obtain HOA/Lien demands is between 5-10 days from the date ordered.
Loan Docs-Once loan docs are received, Escrow can set an appointment for the buyer the following day.
Home Warranty-If Seller is paying for the buyers's Home Warranty, the demand is required before Seller will approve the HUD.
HUD-1 Approval-After the buyer signs the loan documents, the REO Seller and their 3rd party may require more time to approve the HUD.
Funding-Escrow will coordinate with buyer's lender on the bank's HUD approval before funding can occur.

REO Closing

The Seller In an REO transaction the Seller is an out of state bank. The bank contracts a 3rd party asset management company which represents them in the transaction and approves the final escrow closing. All correspondence is done by email, below are a few items performed by Escrow to help you understand the closing process.

Title Commitment (prelim) There may be unforeseen vesting and/or lien issues on the title report that will require Escrow and/or Bank Seller to correct before closing.

HOA Demands (payoffs) Processing time to obtain HOA/Lien demands is between 5-10 days from the date ordered from the HOA management company. (There may be a possible 5-10 additional processing days to obtain lien demand if lien is not of record.)

Loan Docs Once loan docs are received, Escrow can set an appointment for the buyer the following day.

Home Warranty If Seller is paying for the buyer's HW, the demand is required before Seller will approve the HUD.

HUD-1 Approval After the buyer signs the loan documents, the REO Seller and their 3rd party Asset Company may require 24 to 72 hours to approve the HUD after ALL demands are received.

FUNDING Escrow will coordinate with buyer's lender on the Bank's HUD approval before funding can occur. (Changes to the Seller's side of the HUD require additional Seller approval.)

* As in any transaction, the more communication you have with your Escrow Team during the REO closing process the better the transaction will be for all parties. If you have any questions, please contact us. We look forward to earning your business.

Transaction Comparison

	RESALE TRANSACTION	REO TRANSACTION
BUYER & SELLER	TRADITIONAL SELLER Usually an individual owner that has employed a professional real estate agent to sell the property. Selling one home and is personally impacted by the state.	REO SELLER Usually a large corporate lending institution, dealing with a huge volume of properties. Typically employ a large staff and an Asset Management Company
CONTRACT	TRADITIONAL CONTRACT DELIVERY Buyer and seller directly responsible for negotiating, executing and signing. Changes and addendums made directly.	REO CONTRACT DELIVERY Negotiating done by one department, then file is moved to another department to close. Changes difficult and time consuming.
COMMITMENT FOR TITLE INSURANCE	The turn time for a resale transaction is 1-2 days. The stated turn time for REO orders is 3 days.
HOA	HOA TYPICALLY CLEAR HOA information is normally known within 24 hours of opening. HOA payments are usually up to date and the demand is received faster.	HOA OFTEN IN COLLECTION HOA information is not normally known and must be researched. HOA has often gone to collection attorney. HOA demand document can take 10 days.
DEEDS	LOCALLY PROCESSED Deed is executed by seller, without delay.	PROCESSED OUT OF STATE Asset manager often must obtain deed from financial institution. If title is clear, deed can be returned within 72 hours, however delays often occur.
HUD APPROVAL	HUD APPROVAL QUICK & EASY HUD statement is prepared and submitted to agents for final approval well before closing. Changes to contract and commissions are quickly approved by agents and principals on a local level.	HUD APPROVAL COMPLEX AND SLOW HUD statement must be approved by asset management company and submitted to bank for approval. Any changes in terms can cause delays, up to 10 days.
CLOSING	TRADITIONAL SIGNING Escrow officer signs parties, funding occurs, and sale is recorded.	COMPLICATED BY APPROVAL PROCESS Changes require approvals of multiple entities, causing closing delays. Consider possibility of closing delay, especially if buyer is moving.