What To Know Before Buying A Foreclosure Or REO Property

Your Vision, Your Value
With Foreclosure and REO property, we guide you toward homes priced with potential—so you can save on the purchase and invest in renovations that reflect your personal style. It’s not just about buying a home—it’s about creating one that’s truly yours. Contact us today for a free buyer consultation at (805) 796-6482..!

For Home Buyers

Irina Shoket from Shoket Properties
Irina Shoket

Contact: (805) 796-6482
CA BRE License #01246477
info@shoketgroup.com

Jeff Shoket from Shoket Properties
Jeff Shoket

Contact: (805) 551-7341
California BRE License #01899853
info@shoketgroup.com

Conejo Valley Foreclosures & REO property FAQ

Foreclosures as well as (REO) Real Estate Owned properties are homes that are owned by a bank or investment group. After the previous owners were foreclosed upon, these properties were typically purchased, or retained, at auction by a bank or investment group. The condition of these homes can vary quite a bit. They will all be vacant, therefore often times the utilities will be off, additionally the yards and/or pools will be in need of maintenance. The interiors can range from perfectly normal condition to very poor condition – meaning that appliances, fixtures or doors may be missing and there may be broken windows in addition to holes in the walls. Due to condition, some Foreclosures may not qualify for FHA or other conventional loan programs.

Purchasing from a bank or investment group is typically very straightforward. It may take a week or so to receive a response to an offer, but once your offer is accepted, we would move forward just like a normal transaction.

Some Differences in Buying a Foreclosure or REO Property vs a traditional sale:

  • These properties are frequently priced below market value, so it is common to find yourself in a multiple offer situation where the sale price ends up being higher than the list price.
  • The bank will dictate many terms of the contract. Here are the most common items:
    • The Escrow and Title Insurance providers will be of their choosing.
    • The bank may require that you be pre-approved by a lender of their choosing.
    • The timeframes for your inspection as well as other contingencies will likely be shortened to 7-12 days instead of the standard 17 days.
    • The bank may not agree to make any repairs to the property, including termite repairs
    • The bank may not agree to provide you with a Home Protection Plan.
    • The bank may refuse to pay transfer fees that are typically covered by the seller. For instance: HOA Document as well as Transfer Fees, County Transfer Tax and sometimes they even require you to pay their portion of the Escrow in addition to Title fees.
    • The bank’s addendum will require that you pay a penalty for each day that you may be late in closing escrow. This is often around $100 per day
  • Banks typically will not accept an offer that is contingent on the sale of another property.


All in all, it’s possible to get a nice buy when purchasing a Foreclosure or REO. However, you may need to pay a lot more in out-of-pocket expenses than you would with a traditional sale.

The following pages will help to make the home buying process pleasant and easy:

Conejo Valley Realtors serving: Serving Ventura & LA Counties: Agoura Hills, Calabasas, Camarillo, Lake Sherwood, Malibu, Moorpark, Newbury Park, Oak Park, Ojai, Oxnard, Santa Rosa, Simi Valley, Somis, Thousand Oaks, Westlake Village, Woodland Hills, Wood Ranch, + Ventura

Turn Savings Into Style: Renovate Your Way to the Perfect Home
With Foreclosure and REO property, we help buyers uncover opportunities where the purchase price leaves room to renovate. By identifying homes with strong potential and negotiating wisely, you can invest the savings into customizing your space to match your unique tastes and lifestyle—making your dream home a reality. Contact us today for a free buyer consultation at (805) 796-6482..!