Buying REO property or a foreclosure in Orlando/Windermere area?


	Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property.

What's an REO?

"REO" stands for Real Estate Owned. These are properties which have completed the foreclosure process that the bank or mortgage company currently owns. This differs from a property up for foreclosure auction. Proactive Realty Group, LLC has experience to share with foreclosures and bank owned properties in Windermere, Florida

Proactive Realty Group, LLC has experience to share with foreclosures and bank owned properties in Windermere, 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. The buyer must also be able to pay with cash in hand. And on top of all that, you'll get the property entirely as is. That may include standing liens and even current denizens that need to be evicted.

A bank-owned property, by contrast, is a more tidy and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will see to the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that typically requires sellers to make known any defects of which they are aware. By hiring Proactive Realty Group, LLC, 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 Orlando/Windermere?

It is occasionally believed that any foreclosure must be a bargain and a chance for easy money. This simply isn't true. You have to be very careful about buying a REO if your intent is make a profit. Even though the bank is often eager to offload it quickly, they are also looking to get as much as they can for it.

Proactive Realty Group, LLC has experience to share with foreclosures and bank owned properties in Windermere, Florida

When contemplating the value of REO property, 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. It is possible to find REOs with money-making potential, and many people do very well buying and selling foreclosures. Still there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with in buying REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.

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 getting offers. Since banks most commonly sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for hidden damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.)

Once you've presented your offer, it's customary for the bank to counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Realize, you'll be working with a process that generally 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.

* MOL = More or Less