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Interested in REO property or a foreclosure in Flagler Beach, Palm Coast, Beachside?
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Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property.
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What is an REO?
"REO" or Real Estate Owned are homes which have gone through foreclosure and are presently owned by the bank or mortgage company. This is different than 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 added during the foreclosure process. You must also be ready to pay with cash in hand. And on top of all that, you'll accept the property totally as is. That possibly could involve prevailing liens and even current occupants that need to be put out.
A bank-owned property, conversely, is a much neater and attractive deal. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The bank will attend to the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from standard disclosure requirements.
For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement,
a document that normally requires sellers to disclose any defects they are knowledgeable of.
By hiring Ben & Marie Lane, Watson Realty Corp., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in Flagler Beach, Palm Coast, Beachside a bargain?
It is sometimes presumed that any foreclosure must be a good buy and a possibility for easy money. This isn't necessarily true. You have to be cautious about buying a REO if your intent is profit from the sale. While it's true that the bank is typically eager to sell it quickly, they are also looking to get as much as they can for it.
Look carefully at the listing and sales prices of similar properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or remodeling 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 foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.
Time 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 find out 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 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 hidden damage and retract the offer if you find it.
As with making any offer on real estate, providing documentation of your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.
Once you've presented your offer, it's customary for the bank to respond with a counter offer. From there it will be up to you to decide whether to accept their counter, or make another counter offer.
Your deal might be final in one 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. Ben & Marie Lane, Watson Realty Corp. is accustomed to these situations and will work to ensure there are no unnecessary delays.
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Ben Lane, Watson Realty Corp. 1410 Palm Coast Pkwy NW, Palm Coast, FL. 32137
Marie Lane, Watson Referral Realty, 7821 Deercreek Club Rd., Jackonville, FL. 32256
Ben (386-931-8531) Marie (386-931-5727)
ben@twolanes.com marie@twolanes.com
Knowledge is Power. More Flagler Beach/ Flagler Beach Real Estate/Area Resources.
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