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Bank Owned Properties & Short Sales

Greg Payne has vast experience working with bank owned properties. He has over 30 years building

experience, is a licensed Texas real estate agent as well as an active real estate investor. His building

experience alone can assist you with determining profitability on a bank owned property.  Just because

a property is bank owned doesn’t necessarily make it a good value. You need the help of an experienced

agent to assist you in determining what is a good value, your exit strategy for the property and what

financial offer you would like to make.  Lending rules are fluid and changing daily. What is here today

is gone tomorrow. Greg knows how to navigate through the ever changing banking regulations to get

your property under contract in a timely and professional manner.

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Buying Bank Owned Properties (REO): No this is not the next “get rich scheme”.  Buying bank owned properties take time and skill. Not all REO’s are a great deal. You need an experienced agent to show you what is a good deal and what isn’t. If a buyer is patient, they can often get a great deal and end up with instant equity in their purchase. Greg is constantly looking for these REO’s for his own portfolio as well as the clients he serves.

Short Sale:  A short sale occurs when a homeowner owes more on their property than the property is worth, but their bank agrees to accept less than what is owed as payment in full. In other words, the bank is willing to take a discounted pay-off in order to avoid the foreclosure process.  Banks want to avoid the foreclosure process because it is costly and usually far more expensive than the discount the bank is willing to take on the property.

Pre-Foreclosure: A property being marketed on the MLS prior to a foreclosure auction is a “pre-foreclosure”. This is a motivated seller because the seller knows that foreclosure is imminent and the seller has to sell his/her home quickly or lose it to foreclosure.

Foreclosure: When a person falls behind on payments to the lender, the lender has the right to sell his/her property at public foreclosure auction to pay off the loan. Foreclosure is a legal action that the lender takes to force the homeowner to pay the missed amounts, or lose the house at public auction. Typically, the foreclosure process starts when the homeowner is three to six months behind in payments. The foreclosure process starts with a default notice that is sent to the homeowner by mail. The default notice is a warning to the homeowner to pay all of the back payments or lose the house. The default notice will have the exact amount that is to be paid and a list of all the missed payments. Reinstatement is possible at this time if the homeowner can catch up their missed payments as well as make their current payment. If this is not possible, the home will eventually be sold on the courthouse steps in a foreclosure auction.  Typically, the lender has a representative at these auctions to legally buy back these homes which then becomes classified as an “REO” and can be marketed on the MLS through a realtor.

Real Estate Owned (REO): An REO is a property that has gone through the foreclosure process and auction and whose ownership has reverted back to the primary lender.  Typically, the lender has paid off any back taxes, liens and judgments that can cloud the title. The lender will generally do repairs and is responsible for getting the home in a saleable condition to be sold through a realtor on the MLS.  These properties are then listed through a realtor and always sold “as is”.  These properties have minor damage to severe damage to them. Sometimes these properties are in less than desirable neighborhoods. This is where Greg’s experience comes in.  With his building experience he can assist his buyers with costs to determine what is best for his clients’ exit strategy i.e. to rehab the property to sell for retail, hold, improve and rent for cash flow or wholesale the property to another investor.  Greg will do a market analysis to see if the property is a good deal for you. It is a very competitive bidding market and the lenders are looking for the “highest and most best” offers from the public. Let Greg help you structure your offer so that you will have a competitive bid.