Interested in REO property or a foreclosure in Lake Mary?
Smart consumers will turn to a seasoned pro when considering a foreclosed property.
If you have questions about real estate in Lake Mary, Florida, call us or send us an e-mail.
What is an REO?
"REO" or Real Estate Owned are homes which have been through foreclosure that the bank or mortgage company now owns. This is unlike real estate 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 accrued during the foreclosure process. The buyer must also be prepared to pay with cash in hand. Finally, you'll accept the property 100% as is. That may involve existing liens and even current occupants that need to be put out.
A bank-owned property, conversely, is a more tidy and attractive proposition. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will take care of the elimination of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.
Take notice that REOs may be exempt from typical disclosure requirements.
For instance, in California, banks do not have to give a Transfer Disclosure Statement,
a document that usually requires sellers to tell you about any defects of which they are knowledgeable.
By hiring HomePro Properties, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Are REO properties a bargain in Seminole County?
It's sometimes assumed that any REO must be a good deal and an opportunity for easy money. This isn't necessarily true. You have to be prudent about buying a REO if your intent is to make money. Even though the bank is typically anxious to sell it quickly, they are also motivated to minimize any losses.
Look closely 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 remodeling necessary to prepare the house for resale or moving in.
There are bargains with potential to make money, and many people do very well buying foreclosures. But, there are also many REOs that are not good buys and may lose money.
Prepared to make an offer?
Most mortgage companies 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 frequently use 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 their knowledge regarding the condition of the property and what their process is for receiving offers. Since banks typically sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unseen damage and terminate the offer if you find it.
As with making any offer on real estate, providing documentation showing your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.
After you've made your offer, it's customary for the bank to make a counter offer. Then it will be your decision whether to accept their counter, or offer a counter to the counter offer.
Realize, you'll be contending with a process that most likely involves several people at the bank, and they don't work evenings or weekends. It's quite common for there to be days or even weeks of negotiating back and forth. HomePro Properties is accustomed to these situations and will work to ensure there are no undue delays.