Q: What is a bank-owned foreclosure?


A: These are properties that did not sell to a buyer at the auction. The bank was the highest bidder and therefore has taken possession of the property. Because the bank now owns the property, potential

buyers and their Realtors will work directly with the bank’s Realtor, and the process is generally less cumbersome than that of a short sale.


Q: What is the difference between a bank-owned foreclosure and a foreclosure you can bid on at auction?


A: If you bid at auction, you are bidding against the bank and any other interested parties for ownership of the property. When dealing with a bank-owned foreclosure, the property has already been to the auction block and the outcome was the bank was the highest bidder. In other words, when the property doesn’t sell at the auction, the lender takes ownership and it becomes an REO, real estate owned by the bank. Also known as a bank-owned foreclosure.


Q: What are the risks involved in buying foreclosures?


A: Everyone wants to find a deal of the century and foreclosures have that romantic appeal. But there are lots of ways to get yourself into trouble if you’re not careful. It is important to understand that buying a foreclosure is risky and not for the weak of heart. Stories of huge money-making opportunities are largely exaggerated, but there are certainly potential gains to be made by considering foreclosures.


You have to do your homework and be on your toes. Make sure your Realtor does a market analysis to help you come up with your offer. Take into consideration your costs to repair damage and bring the house back to market condition. And look for hidden problems such as tax liens or additional mortgages that you might be responsible for.


Using an experienced real estate agent is critical to protecting your interests especially when it comes to contract verbiage. Another potential issue for buyers is that the verbiage in the contract tends to be worded in a manner that minimizes liability to the bank and prevents recourse from the buyer should any issues come up with the property after closing. Rely on a Realtor to make sure someone is looking out for you.


Q: Is buying a REO easier than buying a short sale?’


A: Yes! In a short sale (auction foreclosure), even if the seller accepts your offer and signs the contract, the lender has the last say as to whether the approval for the transaction goes through. Short sales can take up to 6 months to process and close. In some cases, the lender has been known to cancel the transaction on the same day it was set to close. Buying a REO property directly from the bank tends to eliminate the significant time lags and makes for a smoother, more trouble-free closing.


Q: Where can I find a complete list of REO properties in Maryland -Virginia?


A: REO’s are most often listed in MLS by a real estate professional. Call me or e-mail me , I would be happy to provide you with the most current lists.


Q: Is it common for foreclosures to be sold in “as is” condition? What does that mean?


A: Generally, foreclosures are sold in “as is” condition, meaning the seller will not pay for any repairs that are needed. Sometimes, appliances and cabinetry are missing, and often, because the previous owner was short on funds and in default on the mortgage, maintenance of the home was a low priority. Beyond routine problems, abandoned homes or angry foreclosure victims who might purposely cause damage to the home, could add up to more trouble than it’s worth if you’re not careful. “As is transactions are the ultimate test of the buyer beware philosophy. It is advisable to have a home inspection done, and know what repairs and costs will be necessary to make the home functional. Having an experienced set of Realtor eyes overseeing an “as is” transaction can save you from some serious pitfalls.


Q: Will I receive a seller’s disclosure from the bank, like I would in a normal property purchase?


A: No. Because no one from the bank has actually lived in the property, there is no disclosure statement provided to the buyer. It is the buyer’s responsibility to do due diligence and have that house looked over top to bottom, by a professional home inspector. When a house is in foreclosure and something breaks, it most likely won’t get fixed. Maintenance items may have been ignored for months or maybe years. Ask your real estate agent to recommend a good home inspector.



Call Angie Hashempour at 301-793-3614.









  • 10 Years of Experience
  • Associate Broker in Maryland
  • Licensed Realtor in Virginia
  • Multilingual: English, Spanish, Portuguese, and Farsi
  • Certified REO & Short Sale in
  • Certified REO & Short Sale in
  • Certified BPO
  • e-pro Certified
  • Member NVAR
  • Member of NRBA
  • Member of National Association of Hispanic Real Estate Professionals
  • Member of GCAAR


Please Contact me and tell me how can I help you?



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OFFICE:       1-888-444-9964


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FAX:              240-597-8914




Complete solution to REO management, marketing and disposition of single, multi-family residences, land, and commercial properties. I am a multilingual full time agent with Nitro Realty who has been listing and selling real estate in Maryland and Virginia for over 10 years. I am fluent in English, Spanish, Portuguese, and Farsi. I am licensed Associate Broker in the State of Maryland and a licensed Realtor in Virginia. I have closed millions in sales during the past 4 years and achieved a "Top Producer Award" every year.


Angie Hashempour




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