Purchasing REO property or a foreclosure in Celebration? Making an offer on a bank-owned property is not something to be taken lightly. For more information, just contact me through my site or e-mail me. I'm happy to address questions you have regarding real estate foreclosures. What's an REO? "REO" is short for Real Estate Owned. These are properties which have completed the foreclosure process and are now owned by the bank or mortgage company. This is not the same as 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 added during the foreclosure process. The buyer must also be ready to pay with cash in hand. And on top of all that, you'll receive the property entirely as is. That could comprise of standing liens and even current residents that need to be removed. A bank-owned property, conversely, is a more tidy and attractive proposition. The REO property was unable to 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 prepare for the issuance of a title insurance policy to the buyer at closing. Take notice that REOs may be exempt from standard disclosure requirements. For example, in California, banks are not required to give a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of. By hiring Remax Marketplace, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements. Am I guaranteed a good deal when purchasing a bank owned property in Celebration? It's sometimes believed that any REO must be a steal and an opportunity for easy money. This isn't always the case. You have to be very careful about buying a REO if your intent is profit from the sale. Even though the bank is usually anxious to offload it quickly, they are also looking to minimize any losses. When considering the value of 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 and selling foreclosures. Still there are also many REOs that are not good buys and may lose money. Ready to make an offer? Most lenders have a department dedicated to REO that you'll work with while buying REO property from them. Typically 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 learn as much as you can about their knowledge concerning the condition of the property and what their process is for accepting offers. Since banks almost always sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unseen damage and withdraw 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 presented your offer, you can expect the bank to counter offer. At this point it will be your choice whether to accept their counter, or submit another counter offer. Realize, you'll be dealing with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks.

Karyn Smith Realtor GRI ABR Broker Associate 321 939 7671

Karyn@SearchFloridaHome.com

Celebration Kissimme Florida 34747 North Village, South Village, East Village, West Village, Aqulia Reserve, The Acadias, Artisan Park, Lake Evalyn, Celebration Village, Roseville Corner