Interested in REO property or a foreclosure in Fort Lauderdale?
Purchasing a bank-owned property is not something to be taken lightly. For more information, you can contact me through my site or e-mail me. I'm happy to address questions you have about real estate foreclosures.
What's an REO?
"REO" means Real Estate Owned. These are properties which have completed the foreclosure process that the bank or mortgage company presently holds. This is different than a property 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. You must also be prepared to pay with cash in hand. And on top of all that, you'll accept the property completely as is. That possibly may comprise of standing liens and even current tenants that may require removal.
A bank-owned property, on the contrary, is a more tidy and attractive deal. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The lender will deal with 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.
Note that REOs may be exempt from normal 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 of which they are informed. By hiring Charles Rutenberg Realty LLC, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Am I assured a bargain when investing in an REO property in Fort Lauderdale?
It's occasionally presumed that any REO must be a good deal and an opportunity for easy money. This isn't necessarily true. You have to be cautious about buying a repossession if your intent is make money. While it's true that the bank is typically eager to sell it fast, they are also looking to minimize any losses.
When pondering the value of a foreclosure, 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. The bargains with money making potential exist, and many people do very well flipping foreclosures. Still there are also many REOs that are not good buys and may not be money makers.
Ready to make an offer?
Most lenders have a department dedicated to REO that you'll work with while 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 learn as much as you can about their knowledge about the condition of the property and what their process is for taking offers. Since banks most commonly 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 withdraw the offer if you find it. If, as a buyer, you can provide documentation proving 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.)
After you've presented your offer, it's customary for the bank to respond with a counter offer. From there it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your deal could be final in a single 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.
Charles Rutenberg Realty LLC 2201 West Prospect Rd STE 200 Fort Lauderdale, FL 33309