The term real estate owned (REO) pertains to foreclosed properties taken over by a lender after they fail to sell in an auction. An REO property is listed as a non-performing asset until it is sold; hence, some lenders cut their losses by selling the property at a discount. That said, certain factors can complicate the sale of an REO property.
For instance, it is not uncommon to find vacant properties in violation of certain city codes or encumbered with late penalties and interests. In addition, some REO properties may have questionable titles. All these issues must be ironed out prior to closing the sale of a property. While people normally go to real estate lawyers to fix these issues, document preparation services provide a good alternative.
Much like the name implies, a document preparer drafts legal documents to be signed by those involved in the sale. If you get into a sticky legal dispute, however, real estate lawyers are still your best bet. However, when dealing with relatively minor property acquisition issues, you can save money with a document preparer who charges much lower rates compared to a lawyer.
For instance, in case a property title is put in question, document preparers can conduct a title search to get to the bottom of things. Reliable REO services also include identifying problems like unpaid taxes, senior mortgages, and liens for quick resolution. Additionally, it falls upon the document preparer to ensure that every document is as specific as possible to prevent opportunists from taking legal action due to possible loopholes.
If you are interested in working with a document preparer, it's always advisable to hire someone who's state-certified. It's also more beneficial to look for document preparation companies that have in-house attorneys in case the need for legal counsel arises. Additionally, check if the company has a website and look at the credentials of each preparers so you'll know you're getting the best possible service.
A document preparer can resolve minor issues that may arise out of the sales of an REO property. Although not a substitute for a real estate lawyer, a document preparer can help you save money and close the sale as quickly as possible to prevent significant losses. For additional information, browse through wisegeek.net/what-is-real-estate-owned.htm.
The Benefits of Document Preparation Services