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Buying REO property or a foreclosure in Rhode Island?
What is an REO?"REO" or Real Estate Owned are properties which have completed the foreclosure process and are currently owned by the bank or mortgage company. This is different than real estate up for foreclosure auction. 
When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be prepared to pay with cash in hand. Finally, you'll receive the property totally as is. That may include standing liens and even current denizens that need to be removed.
A bank-owned property, on the contrary, is a much neater and attractive transaction. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The bank will attend to the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.
Take notice that REOs may be exempt from standard disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to reveal any defects of which they are aware. By hiring Atlantic Properties LLC, you can rest assured knowing all parties are fulfilling Rhode Island state disclosure requirements.
Is REO property in Rhode Island a bargain?It's occasionally presumed that any REO must be a good buy and an opportunity for guaranteed profit. This isn't always the case. You have to be prudent about buying a repossession if your intent is make a profit. While it's true that the bank is usually eager to sell it fast, they are also motivated to get as much as they can for it.
 When pondering what to pay for a foreclosure, 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. It is possible to find REOs with money-making potential, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and may lose money.
Ready to make an offer?Most banks have staff dedicated to REO that you'll work with while buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.
Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about their knowledge regarding the condition of the property and what their process is for receiving offers. Since banks typically sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unknown damage and withdraw the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
After you've submitted your offer, it's customary for the bank to respond with a counter offer. At this point it will be your decision whether to accept their counter, or offer a counter to the counter offer. Your deal might be final in a single day, but that's rare. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Atlantic Properties LLC is accustomed to these situations and will work to ensure there are no undue delays.
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