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Looking for REO property or a foreclosure in Parkland, Coral Springs, or Surrounding Areas?
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Investing in a bank-owned property is not something to be taken lightly. |
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What's an REO?"REO" means Real Estate Owned. These are houses which have been foreclosed upon and are presently possessed by the bank or mortgage company. This differs from real estate 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. Finally, you'll get the property entirely as is. That possibly could comprise of existing liens and even current denizens that may require eviction.
A bank-owned property, on the other hand, is a much cleaner and attractive proposition. The REO property did not find a buyer during foreclosure auction. Now the bank owns it. The lender will attend to the elimination of tax liens, evict occupants if needed and generally plan 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 instance, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to disclose any defects they are aware of. By hiring Jeff Hillenbrand, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Are REO properties a bargain in Coral Springs/Parkland?It's sometimes assumed that any foreclosure must be a bargain and a chance for easy money. This often isn't true. You have to be very careful about buying a repossession if your intent is make money. While it's true that the bank is often anxious to offload it soon, they are also motivated to get as much as they can for it.
 When contemplating 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. There are bargains with potential to make money, and many people do very well flipping foreclosures. Still there are also many REOs that are not good buys and may lose money.
Prepared to make an offer?Most lenders have a department dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will frequently hire a listing agent.
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 concerning the condition of the property and what their process is for receiving 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. 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 is generally true for any type of real estate offer.)
Once you've submitted your offer, it's customary for the bank to counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer. Your deal could be final in a single day, but that's rare. 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.
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