Buying REO property or a foreclosure in Indiantown?
|Just as with any home purchase, your smartest move is to hire a professional real estate agent. For more information, just contact me through my site or e-mail me. I'm glad to answer questions you have regarding real estate foreclosures.|
What is an REO?"REO" is short for Real Estate Owned. These are properties which have completed the foreclosure process that the bank or mortgage company now possesses. This is unlike a property 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 accumulated during the foreclosure process. The buyer must also be prepared to pay with cash in hand. Finally, you'll receive the property entirely as is. That possibly may involve standing liens and even current occupants that may require removal.
A bank-owned property, conversely, is a more tidy and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The lender will deal with the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from typical disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to disclose any defects of which they are aware. By hiring Indiantown Realty Corporation, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Am I guaranteed a low price when investing in an REO property in Indiantown?It's frequently assumed that any REO must be a good deal and a possibility for guaranteed profit. This isn't necessarily true. You have to be prudent about buying a REO if your intent is profit from the sale. While it's true that the bank is usually anxious to sell it quickly, they are also looking to minimize any losses.
Look closely at the listing and sales prices of similar properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well flipping foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.
All set to make an offer?Most banks have staff dedicated to REO that you'll work with when buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.
Before making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about what they know about the condition of the property and what their process is for getting offers. Since banks most commonly 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 retract the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any real estate offer.)
After you've presented your offer, it's customary for the bank to counter offer. From there it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Your deal might be settled in one day, but that's usually not the case. 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. Indiantown Realty Corporation is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.