Looking for REO property or a foreclosure in Altamonte Springs?
Just as with any home purchase, your wisest move is to hire a professional real estate agent.
For more information, you can contact me through my site or e-mail me. I'm glad to answer any questions you have regarding real estate foreclosures.
What is an REO?
"REO" or Real Estate Owned are homes which have been through foreclosure and are now owned by the bank or mortgage company. This is not the same as 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 amassed during the foreclosure process. The buyer 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 could comprise of standing liens and even current occupants that may require eviction.
A bank-owned property, on the contrary, is a much neater and attractive deal. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The lender will take care of the removal of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from typical disclosure requirements.
For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement,
a document that typically requires sellers to make known any defects they are knowledgeable of.
By hiring 1st Metro Realty Inc., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Am I guaranteed a good deal when investing in a bank owned property in Altamonte Springs?
It is frequently thought that any REO must be a good buy and an opportunity for guaranteed profit. This simply isn't true. You have to be prudent about buying a REO if your intent is make money. Even though the bank is typically eager to offload it quickly, they are also motivated to minimize any losses.
Look closely at the listing and sales prices of similar homes in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades 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 flipping foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.
Prepared to make an offer?
Most lenders 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 regarding the condition of the property and what their process is for accepting 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 unknown damage and cancel the offer if you find it.
As with making any offer on real estate, providing documentation of your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.
Once you've submitted your offer, you can expect the bank to counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer.
Your deal might be final in one day, but that's usually not the case. 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.
Look closely at the listing and sales prices of similar homes in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades 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 flipping foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.
