Interested in REO property or a foreclosure in Jupiter?
Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. For more information, just contact us
through our site or e-mail us
. We're glad to answer any questions you have about real estate foreclosures.
What is an REO?
"REO" or Real Estate Owned are houses which have completed the foreclosure process and are now owned by the bank or mortgage company. This is different than real estate 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. You must also be able to pay with cash in hand. To top everything off, you'll receive the property totally as is. That possibly could comprise of standing liens and even current denizens that need to be kicked out.
A bank-owned property, conversely, is a much neater and attractive transaction. The REO property didn't find a buyer during foreclosure auction. Now the bank 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.
Do be aware 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 ordinarily requires sellers to reveal any defects they are informed of. By hiring Seiss Real Estate, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Am I guaranteed a good deal when buying an REO property in Jupiter?
It's commonly presumed that any foreclosure must be a steal and an opportunity for guaranteed profit. This frequently isn't true. You have to be very careful about buying a REO if your intent is to make money. Even though the bank is usually anxious to sell it fast, they are also looking to get as much as they can for it.
When pondering 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. The bargains with money making potential exist, and many people do very well buying foreclosures. Still, there are also many REOs that are not good buys and may not be money makers.
Ready to make an offer?
Most banks have staff dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will often use a listing agent.
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 concerning the condition of the property and what their process is for getting offers. Since banks typically 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, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
Once you've made your offer, you can expect the bank to make a counter offer. At this point it will be your decision whether to accept their counter, or submit another counter offer. Your transaction could 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. Seiss Real Estate is accustomed to these situations and will work to ensure there are no undue delays.