Making an offer on REO property or a foreclosure in Tierra Verde?


	Making an offer on a bank-owned property is not something to be taken lightly.

What is an REO?

"REO" means Real Estate Owned. These are homes which have completed the foreclosure process that the bank or mortgage company currently holds. This differs from real estate up for foreclosure auction. Equity Consultants Inc has experience to share with foreclosures and bank owned properties in Tierra Verde, Florida

Equity Consultants Inc has experience to share with foreclosures and bank owned properties in Tierra Verde, Florida

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. You must also be willing to pay with cash in hand. To top everything off, you'll get the property 100% as is. That possibly could involve prevailing liens and even current occupants that may require expulsion.

A bank-owned property, on the contrary, is a much cleaner and attractive option. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The bank will see 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 normal disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to tell you about any defects of which they are aware. By hiring Equity Consultants Inc, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I assured a good deal when buying a bank owned property in Tierra Verde?

It is sometimes assumed that any foreclosure must be a good buy and a chance for guaranteed profit. This simply isn't true. You have to be very careful about buying a REO if your intent is profit from the sale. Even though the bank is typically anxious to offload it promptly, they are also motivated to get as much as they can for it.

Equity Consultants Inc has experience to share with foreclosures and bank owned properties in Tierra Verde, Florida

Look carefully at the listing and sales prices of competing 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. It is possible to find REOs with money-making potential, and many people do very well buying and selling foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most lenders have a department 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 usually use a listing agent.

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 regarding the condition of the property and what their process is for accepting offers. Since banks typically 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 cancel 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, it's customary for the bank to make a counter offer. From there it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your transaction might be settled 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.