Looking for REO property or a foreclosure in Indialantic?
Making an offer on a bank-owned property is not something to be taken casually.
For more information, just contact me through my site or e-mail me. I'm glad to answer questions you have about real estate foreclosures.
What's an REO?
"REO" or Real Estate Owned are houses which have been through foreclosure that the bank or mortgage company now possesses. This is different than a property up for foreclosure auction.
If you buy 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. You must also be prepared to pay with cash in hand. And on top of all that, you'll receive the property totally as is. That possibly may comprise of current liens and even current occupants that need to be thrown out.
A bank-owned property, on the contrary, is a much neater and attractive transaction. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will deal with the removal of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from normal disclosure requirements.
For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement,
a document that usually requires sellers to reveal any defects they are informed of.
By hiring Sandy Legere/RE/MAX Olympic Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in Indialantic a bargain?
It is commonly assumed that any REO must be a steal and a possibility for guaranteed profit. This frequently isn't true. You have to be prudent about buying a repossession if your intent is make a profit. While it's true that the bank is usually eager to sell it fast, they are also motivated to minimize any losses.
When contemplating what to pay for a foreclosure, carefully analyze 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.
There are bargains with potential to make money, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.
All set to make an offer?
Most mortgage companies have staff dedicated to REO that you'll work with while buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.
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 regarding the condition of the property and what their process is for getting 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 unknown damage and cancel the offer if you find it.
As with making any offer on real estate, providing documentation proving your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.
Once you've submitted your offer, it's customary for the bank to respond with a counter offer. Then it will be your choice whether to accept their counter, or make another counter offer.
Realize, you'll be contending with a process that generally involves multiple people at the bank, and they don't work evenings or weekends. It's not uncommon for there to be days or even weeks of negotiating back and forth. Sandy Legere/RE/MAX Olympic Realty is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.
When contemplating what to pay for a foreclosure, carefully analyze 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.
There are bargains with potential to make money, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.
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