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Purchasing REO property or a foreclosure in Flagler Beach, Palm Coast, Beachside?
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Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
For more information, you can contact me through my site or e-mail me. I'm glad to address any questions you have regarding real estate foreclosures.
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What's an REO?
"REO" or Real Estate Owned are properties which have been through foreclosure that the bank or mortgage company now possesses. This differs from a property up for foreclosure auction.
If you buy 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. To top everything off, you'll accept the property completely as is. That possibly may involve standing liens and even current occupants that need to be kicked out.
A bank-owned property, on the contrary, is a much cleaner and attractive transaction. The REO property didn't 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 organize for the issuance of a title insurance policy to the buyer at closing.
Do be aware that REOs may be exempt from standard disclosure requirements.
For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement,
a document that typically requires sellers to tell you about any defects they are aware of.
By hiring Ben & Marie Lane, Watson Realty Corp., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Are REO properties a bargain in Flagler Beach, Palm Coast, Beachside?
It is frequently presumed that any REO must be a bargain and a possibility for easy money. This isn't necessarily true. You have to be very careful about buying a repossession if your intent is to make money off of it. Even though the bank is usually eager to offload it soon, they are also motivated to get as much as they can for it.
When contemplating what to pay for a foreclosure, you need to look closely at 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.
There are bargains with potential to make money, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.
Ready 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 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 receiving offers. Since banks usually sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for hidden damage and cancel 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 goes for any type of real estate offer.)
Once you've made your offer, it's customary for the bank to counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer.
Your deal might be settled 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. Ben & Marie Lane, Watson Realty Corp. is are used to working around the schedules of this type of seller and will do everything possible 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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