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How to Buy Foreclosures, Foreclosed Bank Owned Properties, and REO Home in Minnesota and Wisconsin
PLUS: How to get the BEST HOME LOAN and Mortgage Interest Rates

Foreclosures: There is a lot of interest in buying bank owned foreclosed properties these days. A lot of information, some good and some bad, is floating around about the subject.   Often the information offered is for sale, with the promise that you can make a lot of money with little effort once you know “the secret formula”.  The fact is that there are no secrets, and to make money does require effort. Let's look at the foreclosure facts! The foreclosure market in the Minneapolis, St Paul MN area has many opportunities. 

What’s an REO?
REO stands for “Real Estate Owned”.  These are properties that have gone through foreclosure and are now completely owned by the bank or mortgage company.  This is not the same as a property up for foreclosure auction.  

A REO, by contrast, is a much “cleaner” and attractive transaction.  The REO property did not find a buyer during the Sheriff's 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 many states, for example, banks are exempt from giving a common Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.

Is the Foreclosed Home a bargain?
In the Minneapolis St Paul area, it is commonly assumed that any foreclosure must be a bargain and an opportunity for easy money.  This simply isn’t true.  You have to be very careful about buying a foreclosed home if your intent is to make money off of it.  While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it.  When considering the value of a REO, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale.  The bargains with money making potential exist, and many people do very well buying foreclosures.  But there are also many foreclosed homes (REO) that are not good buys and not likely to turn a profit. 

Ready to make an offer?
Most banks have a REO department that you Realtor will work with in buying a REO property Minneapolis, St Paul, Duluth, Rochester, Madison, Milwaukee, and all of Minnesota and Wisconsin. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.  Before making your offer, you’ll want to contact either the listing agent or REO department at the bank and find out as much as you can about what they know about the condition of the property and what their process is for receiving offers.  Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it.  As with making any offer on real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.  After you’ve made your offer, you can expect the bank to make a counter offer.  Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer.  Realize, you’ll be dealing with a process that probably involves multiple people at the bank, and they don’t work evenings or weekends.  It’s not unusual for the process of offers and counter offers to take days or even weeks.

First Time Home Buyer Guide
If you are looking for a complete guide that outlines the entire process, step by step,  of buying your first home, then download our FREE book call "The COMPLETE Home Buyers Guide to Financing Your Home"

More MN and WI First Time Home Buyer Resources
There are other miscellaneous resources available to the first time home buyer that are found all over the internet, but the reality is that there is no substitute for a great first time home buyer experience than working with true professionals in the industry. The two main people that make it all come together are a real estate brokers that specialize in working with first time home buyers, and a mortgage loan officer that is experienced in first time buyers, and who has access to all the first time buyer programs, assistance, and grant programs available.

Luckily, you've landed on a web site that can handle both for you, and it all starts with a simple no obligation application. Get started right now from the comfort of your home by filling out our first time home buyer mortgage loan application. There are no obligations.

For most families, buying or selling a home is one of the biggest decisions you'll ever make. We'd be honored for the chance to help you with the financing, and direct you to a true real estate professional.

There are dozens of big bank mortgage lenders nationally, but you really need a local mortgage broker in Minneapolis, Saint Paul, or the state you state you are looking to buy your foreclosed home.  Why?  Because we know the metro area and the surrounding areas like the back of our hand! We know the local REALTORS®, appraisers, inspectors, and so much more.  We also have state-of-the-art technology that makes the loan process as easy and fast as possible, all while delivering personal customer service that can’t be beat.  Don’t gamble your family’s largest investment with a big name lender and a telemarketing Loan Officer at some out-state call center that may not know the Minneapolis, St Paul area.

We serve all of Minnesota and Wisconsin, but primarily the following areas with home loans, real estate, title, and related services: Hennepin County Ramsey County Dakota County Washington County Scott County Anoka County Rice County St. Croix County, Wisconsin