Buying REO property or a foreclosure in Davenport?

Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. 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's an REO?

"REO" means Real Estate Owned. These are properties which have completed the foreclosure process and are currently owned by the bank or mortgage company. This differs from a property up for foreclosure auction. Orlando Golf Realty has experience to share with foreclosures and bank owned properties in Davenport, Florida

If you buy 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. To top everything off, you'll receive the property 100% as is. That possibly will comprise of standing liens and even current residents that need to be expelled.

A bank-owned property, on the contrary, is a much cleaner and attractive deal. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The bank will attend to 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.

Do be aware that REOs may be exempt from normal disclosure requirements. For example, in North Carolina, 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 Orlando Golf Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Is REO property in Davenport a bargain?

It's occasionally assumed that any foreclosure must be a bargain and a chance for guaranteed profit. This isn't necessarily the case. You have to be prudent about buying a REO if your intent is profit from the sale. Even though the bank is often eager to offload it quickly, they are also looking to minimize any losses.

Orlando Golf Realty has experience to share with foreclosures and bank owned properties in Davenport, Florida Look carefully 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 remodeling necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most lenders have a department dedicated to REO that you'll work with when buying REO property from them. Normally 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 find out as much as you can about what they know about the condition of the property and what their process is for getting 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 retract 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 holds for any real estate offer.)

Once you've presented your offer, you can expect the bank to make a counter offer. From there it will be your decision whether to accept their counter, or submit another counter offer. Your deal might be settled in one 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. Orlando Golf Realty 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. lando Golf Realty 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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