|
|
|
|
Buying REO property or a foreclosure in Orlando-Winter Park?
 |
 |
 |
Purchasing a bank-owned property is not something to be taken casually. For more information, simply contact me through my site or e-mail me. I'm glad to answer any questions you have regarding real estate foreclosures. |
|
|
|
 |
What's an REO?"REO" stands for Real Estate Owned. These are properties which have been through foreclosure and are currently possessed by the bank or mortgage company. This is not the same as 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 amassed during the foreclosure process. You must also be able to pay with cash in hand. Finally, you'll get the property entirely as is. That possibly could involve current liens and even current tenants that need to be evicted.
A bank-owned property, on the contrary, is a more tidy and attractive deal. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The lender will take care of 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.
You should be aware that REOs may be exempt from typical disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to disclose any defects of which they are aware. By hiring Luxury Florida Homes, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Am I assured a good deal when investing in an REO property in Orlando-Winter Park?It is commonly assumed that any foreclosure must be a bargain and an opportunity for guaranteed profit. This frequently isn't true. You have to be prudent about buying a REO if your intent is to make money off of it. While it's true that the bank is usually eager to sell it quickly, they are also motivated to minimize any losses.
 Look carefully at the listing and sales prices of comparable homes in the neighborhood when making an offer on 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 buying foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.
Time to make an offer?Most banks have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will often contract with a listing agent.
Before 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 concerning 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 is generally true for any type of real estate offer.)
After you've submitted your offer, you can expect the bank to make a counter offer. From there it will be your decision whether to accept their counter, or make another counter offer. Your deal could be final in a single day, but that's rare. 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. Luxury Florida Homes is accustomed to these situations and will work to ensure there are no undue delays.
|
|
|
400 Park Avenue, Suite 210
Orlando-Winter Park, Florida 32789
Phone: (407) 620.9044 direct Fax: (407) 628-1210
www.LuxuryFloridaHomes.com
Member of FIABCI - International Real Estate Association
Orlando Immobilien
Orlando Imobiliária
|
