Yavapai County Weekly Foreclosure List

What’s an REO?
REO stands for “Real Estate Owned”.  These are properties that have gone through foreclosure and are now owned by the bank or mortgage company.  This is not the same as a property up for foreclosure auction (we can discuses that later) When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process.  You must also be prepared to pay with cash in hand.  And on top of all that, you’ll receive the property 100% “as is”.  That could include existing liens and even current occupants that need to be evicted. You are then required in Yavapai County to have $10,000 cash deposit and the remainder of the sale in cashers check (cash). There are no inspections. If you can’t tell this is a huge liability to you the buyer unless you know exactly what you are doing.

In Prescott Arizona A REO, by contrast, is a much “cleaner” and attractive transaction.  The REO property did not find a buyer during foreclosure auction.  The bank now owns it.  The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.  Do be aware that REO’s may be exempt from normal disclosure requirements.  In Arizona, for example, banks are exempt from giving a Seller Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of. By the way you are not the only one in Arizona that is interested in these types of properties 95% of these sell in the first few days if not weeks. Also, if the property is a deal you might see multiple offers on the property. Another thing to be aware of is that not all lenders will loan on homes with need of clean up or remodel work. Now more than ever is a great time to have a team of professionals that can work with you.