Making an offer on REO property or a foreclosure in Mount Dora?


	Just as with any home purchase, your smartest move is to hire a professional real estate agent.

What is an REO?

"REO" or Real Estate Owned are homes which have been through foreclosure that the bank or mortgage company now possesses. This is unlike real estate up for foreclosure auction. Southern Realty, LLC has experience to share with foreclosures and bank owned properties in Mount Dora, Florida

Southern Realty, LLC has experience to share with foreclosures and bank owned properties in Mount Dora, Florida

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. The buyer must also be able to pay with cash in hand. And on top of all that, you'll receive the property 100% as is. That possibly may consist of existing liens and even current occupants that may require expulsion.

A bank-owned property, conversely, is a much neater and attractive option. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The bank will take care of the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

You should be aware 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 normally requires sellers to reveal any defects of which they are aware. By hiring Southern Realty, LLC, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Are REO properties a bargain in Mount Dora?

It's frequently thought that any foreclosure must be a good deal and a possibility for easy money. This often isn't true. You have to be prudent about buying a repossession if your intent is to make money off of it. Even though the bank is typically anxious to sell it soon, they are also motivated to get as much as they can for it.

Southern Realty, LLC has experience to share with foreclosures and bank owned properties in Mount Dora, Florida

When pondering what to pay for 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 buying foreclosures. However there are also many REOs that are not good buys and may lose money.

Prepared to make an offer?

Most lenders have staff 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 what they know regarding the condition of the property and what their process is for getting offers. Since banks usually sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and withdraw the offer if you find it. As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've presented your offer, it's customary for the bank to respond with a counter offer. Then it will be up to you to decide whether to accept their counter, or make another counter offer. Your deal could be settled in a single day, but that's usually not the case. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.

You can find great local Mount Dora, Florida real estate information on Localism.com Marlene Kemp is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.