Jim Maloof / Realtor® welcomes you to the REO division. We offer an outstanding team that will connect you with properties that rank among the very best in buying opportunities. Here is an outstanding opportunity to find affordable real estate from a wide assortment of extremely well priced properties listed with Jim Maloof / Realtor®. Let us be your bridge to the REO market, and give us the opportunity to work for you.
Buying an REO requires many difficult decisions. For most people, buying a home/investment is the biggest purchase you will ever make, and it's a bit more complex than simply choosing the house that you like.
As your REALTOR, here is how the Maloof Team will guide you through the entire process, from viewing homes and financing, to making sure that the final contract is in your best interest.
Through our professional real estate affiliations and personal network, you will have full access to all REO homes available on the Peoria, Galesburg, and Bloomington/Normal MLS, even listings not yet on the MLS.
Our expert local knowledge of these areas will be invaluable to you, not just in terms of real estate, but also schools, neighborhoods, the local economy, and more.
Every local real estate market absolutely has its own trends and opportunities. This can vary greatly from one neighborhood to the next. These areas are no different! It's our job to steer you into opportunities and out of traps.
What is the true market value of the home you are interested in? Is it priced too high? Is it a bargain that you should jump on? We help homebuyers/investors make decisions like this every single day, and we'll make sure that YOU get the best value for your money.
Negotiating with REO banks can be stressful. We will help you negotiate, or if you would like, do it entirely on your behalf. We always negotiate very aggressively so that the final contract includes your best possible terms and conditions.
You should know absolutely everything about the property you're buying! We will view every REO you interested in, together. And prior to closing we will make you fully aware of any and all inspections available to you.
Have confidence when signing documents. Contracts are full of complicated terms and clauses that greatly affect your future life in your new home/investment. We will give you the full benefit of our real estate knowledge and experience.
What You Need to Know
REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful 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 associated 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 for Sale
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.
How Banks Sell 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.
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.
Information for Banks
Jim Maloof / Realtor® has the exclusive right contracts for the property preservation and listing activity of over 8 million dollars worth of bank-owned real estate for some of the country's largest banks. The marketing of a REO property is often more urgent and complex than the sale of a typical owner-occupied home. These properties are often times in need of rehabilitation, and always need constant maintenance and supervision. Jim Maloof / Realtor® has the in-house tools to address these needs.
Jim Maloof / Realtor® efficiently manages and sells REO assets for a wide range of corporate clients. Our success in this area has come from reducing costs and staff time in managing REO properties. Fast response times to initial inspections, BPOs, and routine communication increases productivity and significantly reduces the market time of an REO asset.
We offer a comprehensive set of services to successfully liquidate these properties:
- Determination of occupancy status and intent
- Eviction services
- Re-keying and securing property
- Broker price opinion (BPO) reports
- Coordination of rehabilitation and maintenance
- Multiple Listing Service
- Multi-angle marketing programs
- Knowledge of local sale requirements
- Monthly status reports
- Escrow management and follow-up
Working with numerous REO asset managers, Jim Maloof / Realtor® is continually outperforming other REO sales channels. Our average days on market counts for REO listings are far lower than market averages for our competitors, but it is primarily our responsiveness that has earned us a long list of glowing references. If you are an asset manager interested in utilizing Jim Maloof / Realtor® as your local broker for your bank-owned listings, please contact Troy Kerrn at the phone number on the home page.