Purchasing REO property or a foreclosure in Brandon?


	Purchasing a bank-owned property is not something to be taken casually. If you have any questions about real estate in Brandon, Florida, call me or send me an e-mail.

What is an REO?

"REO" is Real Estate Owned. These are houses which have completed the foreclosure process that the bank or mortgage company currently owns. This is unlike a property up for foreclosure auction. Keller Williams has experience to share with foreclosures and bank owned properties in Brandon, Florida

Keller Williams has experience to share with foreclosures and bank owned properties in Brandon, Florida

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 willing to pay with cash in hand. Finally, you'll accept the property completely as is. That may consist of standing liens and even current tenants that need to be thrown out.

A bank-owned property, on the contrary, is a much cleaner and attractive proposition. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The bank will handle the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from standard disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to make known any defects they are knowledgeable of. By hiring Keller Williams, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I assured a low price when purchasing a bank owned property in Brandon?

It is commonly presumed that any foreclosure must be a bargain and an opportunity for easy money. This isn't necessarily the case. You have to be cautious about buying a repossession if your intent is make a profit. While it's true that the bank is typically anxious to offload it fast, they are also motivated to minimize any losses.

Keller Williams has experience to share with foreclosures and bank owned properties in Brandon, Florida

Look closely at the listing and sales prices of competing properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. There are bargains with potential to make money, 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.

Ready to make an offer?

Most lenders have staff dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will frequently hire a listing agent.

Before 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 their knowledge concerning the condition of the property and what their process is for getting offers. Since banks most commonly 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 unknown damage and terminate the offer if you find it. As with making any offer on real estate, providing documentation of your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.

After you've made your offer, it's customary for the bank to respond with a counter offer. At this point it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Realize, you'll be contending with a process that usually involves multiple 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.