Crossroads REO

REO or Bank-Owned Properties FAQ's

Q: What does REO stand for?
REO stands for Real Estate Owned and refers to Bank-owned properties.

Q: What is a "bank-owned property"?
A: When a borrower with a mortgage from a bank or mortgage lender can't meet the payments, the lender forecloses on the property and takes ownership of the property. Then the lender lists it with a listing (real estate) agent and sells it at market value as quickly as possible.

Q: Who can buy a Bank-owned property?
A: Anyone! If you have the cash or can qualify for a mortgage, you can buy a Bank-owned property.

Q: Can I buy a Bank-owned property as an investment?
A: Yes, Bank-owned properties listed on the crossroads-reo.com web site are available to all buyers, including investors.

Q: How can I find out what Bank-owned properties are for sale?
A: Right here! The Bank-owned properties available on the crossroads-reo.com web site can be viewed at www.crossroads-reo.com

Q: What is the condition of Bank-owned properties listed on the crossroads-reo.com web site?
A: All Bank-owned properties offered on the crossroads-reo.com web site are sold "as-is". The Lender, the listing agent, and the CROSSROADS REO web site do not make any warranty or representation, expressed or implied, regarding properties for sale on the web site. The buyer is expected to perform an inspection with a licensed contractor at the buyer's expense.

Q: Why do banks have properties for sale?
Home lenders work with all of their partners to help homeowners prevent and avoid foreclosure; however, sometimes it is unavoidable. When foreclosures occur on mortgages in which a lender is the investor, our goal is to sell properties in a timely manner in order to minimize the impact on the community.

Q: What kinds of properties are available in the Crossroads Reo database?
Our database includes properties that are owned by over 40 different bank institutions. There is a wide selection of homes, including single-family homes, condominiums, and town houses—located in a variety of neighborhoods. The number, types and the sales prices of the homes that are offered for sale may vary substantially. Many of these homes are relatively new; however, older homes are offered in some areas. Some homes may require repairs.

Q: How is buying a home owned or managed by a Crossroads Reo client different from other home purchases?
Usually, when you buy a home, you deal with a seller who lives in the home. Our bank clients have acquired these properties through foreclosure, deed in lieu of foreclosure, or forfeiture.

When buying a Fannie Mae-owned home, you should know the condition of the property, as explained in more detail below, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.

Q: Do our lenders fix everything in the house?
Banks may make some repairs to properties to increase their marketability; however, the buyer should be aware that other repairs may be needed. Banks sell each property "as is," which means that the buyer accepts the property "as is." Our bank client is not responsible for fixing any problems after settlement.

Even if the house has fresh paint, brand new carpet, new appliances, perhaps even a new roof or siding, it doesn't mean everything in the house is new, or even works.

Bank clients do not warrant or guarantee any work that may have been done on the property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract. Where a home warranty is available, you may wish to buy it at your own expense.

You should also consider hiring a qualified professional to inspect the property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy.

Q: What can you tell me about this house?
If our bank seller knows of any hazards on properties we own or market, we disclose this information through our real estate listing agents. However, we may not have been informed by the previous owner of all hazards. We encourage you to have the property inspected by a professional before you buy.

Q: What type of sales contract do foreclosure banks use?
Bank sellers use a state-specific real estate purchase contract and a real estate purchase addendum for our properties. If there is anything in the document you don't understand or aren't comfortable with, you may want to contact a real estate attorney, the real estate sales professional who has listed the property, or any real estate professional of your choice to review these documents with you.

Q: Do I have to use the seller’s selected title, settlement, or escrow companies?
No. You may designate the title, settlement, or Escrow Company of your choice, subject to the terms of the contract.

Q: Will a bank seller accept an offer contingent on the sale of my house?
No, banks will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.

Q: Why do some bank sellers require a lender's prequalification statement before negotiating a home purchase offer?
A bank seller wants to be sure that prospective buyers will be able to complete the sales transaction, including obtaining financing when needed. Prequalification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range.

A loan prequalification doesn't mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.

Q: Do bank sellers offer any special kind of Reo Financing?
Special financing is available on many properties through that lenders retail lending department. Contacting the listing agent is the best way to find out what deals are available.

Q: What happens if Crossroads Reo gets more than one offer?
All interested parties may be asked to submit their best offer in writing though the listing agent no later than a specified date and time. Bank sellers may accept or provide a counteroffer that they determine to be in their best interest. The bank seller is not obligated to accept any offer submitted.

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