Looking for REO property or a foreclosure in Ft. Myers Beach?
Savvy consumers will turn to a seasoned pro when considering a foreclosed property. For more information, just contact me through my site or e-mail me. I'm glad to answer questions you have regarding real estate foreclosures.
What's an REO?
"REO" or Real Estate Owned are houses which have completed the foreclosure process and are now held by the bank or mortgage company. This is different than 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 accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. To top everything off, you'll receive the property 100% as is. That could involve standing liens and even current tenants that need to be kicked out.
A bank-owned property, on the other hand, is a more tidy and attractive option. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The bank will deal with the elimination 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 normal disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to disclose any defects they are informed of. By hiring RE/MAX Realty Group, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Are REO properties a bargain in Ft. Myers Beach?
It's frequently believed that any foreclosure must be a good buy and an opportunity for easy money. This isn't necessarily the case. You have to be very careful about buying a repossession if your intent is profit from the sale. While it's true that the bank is typically anxious to offload it promptly, they are also looking 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. The bargains with money making potential exist, and many people do very well flipping 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 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 usually hire a listing agent.
Prior to 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 their knowledge concerning the condition of the property and what their process is for taking offers. Since banks usually sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unseen damage and terminate the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any type of real estate offer.)
Once you've presented your offer, it's customary for the bank to counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be working with a process that usually involves a group of 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.
RE/MAX Realty Group PO BOX 6600 Ft. Myers Beach, FL 33932
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. The bargains with money making potential exist, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.
