Buying REO property or a foreclosure in Fort Lauderdale?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional.

What's an REO?

"REO" or Real Estate Owned are houses which have gone through foreclosure and are now held by the bank or mortgage company. This is different than real estate up for foreclosure auction. Floridian Coastline Group has experience to share with foreclosures and bank owned properties in Fort Lauderdale, Florida

Floridian Coastline Group has experience to share with foreclosures and bank owned properties in Fort Lauderdale, Florida

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. To top everything off, you'll get the property 100% as is. That may involve current liens and even current tenants that need to be removed.

A bank-owned property, on the other hand, is a much cleaner and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will see to the elimination 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 normal disclosure requirements. For instance, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that ordinarily requires sellers to reveal any defects of which they are knowledgeable. By hiring Floridian Coastline Group, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Are REO properties a bargain in Fort Lauderdale?

It's occasionally assumed that any REO must be a good deal and a possibility for guaranteed profit. This simply isn't true. You have to be prudent about buying a REO if your intent is to make money off of it. Even though the bank is often anxious to offload it quickly, they are also motivated to get as much as they can for it.

Floridian Coastline Group has experience to share with foreclosures and bank owned properties in Fort Lauderdale, Florida

Look closely at the listing and sales prices of similar properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.

Time to make an offer?

Most mortgage companies have staff dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will often contract with a listing agent.

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 regarding the condition of the property and what their process is for taking offers. Since banks most commonly sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on real estate, providing documentation proving your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've submitted your offer, it's customary for the bank to make a counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer. Realize, you'll be dealing with a process that probably involves multiple people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of negotiating back and forth.