Buying REO property or a foreclosure in Palm City?


	Investing in a bank-owned property is not something to be taken casually. If you have any questions regarding real estate in Palm City, Florida, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are houses which have completed the foreclosure process and are now possessed by the bank or mortgage company. This differs from real estate up for foreclosure auction. Southern Florida Real Estate Services, Inc. has experience to share with foreclosures and bank owned properties in Palm City, Florida

Southern Florida Real Estate Services, Inc. has experience to share with foreclosures and bank owned properties in Palm City, Florida

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. The buyer must also be able to pay with cash in hand. To top everything off, you'll accept the property totally as is. That could include existing liens and even current residents that need to be expelled.

A bank-owned property, on the contrary, is a much neater and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will attend to the removal of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

Note that REOs may be exempt from standard disclosure requirements. In California, for example, banks are not required to give a Transfer Disclosure Statement, a document that typically requires sellers to make known any defects they are informed of. By hiring Southern Florida Real Estate Services, Inc., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Are REO properties a bargain in Martin County?

It is occasionally assumed that any foreclosure must be a good buy and a chance for guaranteed profit. This isn't always true. You have to be prudent about buying a REO if your intent is make a profit. Even though the bank is usually anxious to sell it soon, they are also looking to minimize any losses.

Southern Florida Real Estate Services, Inc. has experience to share with foreclosures and bank owned properties in Palm City, Florida

When considering the value of REO property, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Time to make an offer?

Most lenders have staff dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will typically contract with a listing agent.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about what they know about the condition of the property and what their process is for taking offers. Since banks most commonly sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and retract the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've presented your offer, you can expect the bank to respond with a counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your deal might be final in one day, but that's usually not the case. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.