REO, Short Sale, & Foreclosure Appraisal Services
Domus Appraisals is a leading provider of foreclosure appraisals, Real Estate Owned (REO) Appraisals, and short sale appraisals. The foreclosure process is a long and complicated one. Appraisers are engaged by lenders and homeowners to determine the market value of a property that is set for foreclosure or short sale. In these cases, time is of the essence and Domus can provide accurate foreclosure appraisal services within the required time frame.
Foreclosed Property:
A property in which the holder of the mortgage sells the property upon the failure of the borrower to pay the mortgage debt, thereby terminating the borrower’s rights to the property.
REO Property:
A property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction. A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the beneficiary will legally repossess the property. This commonly is the case when the amount owed on the home is higher than the current market value of this foreclosure property. As soon as the beneficiary repossesses the property it is listed on their books as REO and categorized as a non-performing asset.
Short Sale:
A sale of real estate in which the sale price is less than the balance of the mortgage(s) held against the property. Short Sales are subject to the approval of the mortgage holder and do not necessarily release the borrower from their obligations.
Short sales are often used an alternative to foreclosure because it avoids additional fees and costs to both the borrower and the creditor. Both foreclosures and short sales typically result in a negative credit report against the property owner.
Not only are the borrowers affected by a foreclosure, but foreclosed properties are also considered to bring a negative mark against the lender who holds the mortgage. Short sale properties are often headed towards foreclosure. In many instances it is in the best interest of the lender to work with the borrower to facilitate a short sale. Pre-foreclosure, short sale, and REO properties are sought by investors as they can sell substantially below market value due to the sellers being very motivated.
Domus Appraisals can provide ‘as-is’ and/or ‘as-repaired’ values of the property, as well as an estimated ‘cost to cure’ (list of repairs). In some instances, a client may need to know the ‘fire sale’ or ‘auction’ value of a property in which the property would not be exposed to the open market for a normal period. The value sought is reflective of what a property would sell for if the marketing time was much less than normal, usually between 1 and 30 days.
Domus Can Help If You Need Foreclosure Appraisal Services
Foreclosure Appraisals, REO Appraisals, and Short Sale Appraisals are all specialty type appraisals handled by Domus Appraisals. Our knowledge of the foreclosure and short sale processes allow us to serve our clients to the fullest. Domus Appraisals delivers highly professional appraisals with an unparalleled level of service and communication.
If you need an appraisal of a foreclosed property or a property subject to short sale, be sure to call on Domus Appraisals to provide an accurate property appraisal within the time frame you need. Call us today at 1-866-939-5979 or fill out a contact form.
