Making an offer on REO property or a foreclosure in Altamonte Springs?


	Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property.

What is an REO?

"REO" is short for Real Estate Owned. These are houses which have been foreclosed upon and are presently held by the bank or mortgage company. This differs from real estate up for foreclosure auction. Nextage UpTown Realty has experience to share with foreclosures and bank owned properties in Altamonte Springs, Florida

Nextage UpTown Realty has experience to share with foreclosures and bank owned properties in Altamonte Springs, Florida

When buying 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. You must also be able to pay with cash in hand. Finally, you'll accept the property 100% as is. That possibly may comprise of existing liens and even current residents that may require expulsion.

A bank-owned property, on the contrary, is a more tidy and attractive transaction. 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.

Do be aware 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 typically requires sellers to tell you about any defects they are informed of. By hiring Nextage UpTown Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Are REO properties a bargain in Altamonte Springs?

It's commonly assumed that any REO must be a steal and a possibility for easy money. This isn't necessarily true. You have to be cautious about buying a REO 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 minimize any losses.

Nextage UpTown Realty has experience to share with foreclosures and bank owned properties in Altamonte Springs, Florida

Look carefully at the listing and sales prices of competing homes 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. The bargains with money making potential exist, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

Ready to make an offer?

Most mortgage companies have staff 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 usually use 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 their knowledge about the condition of the property and what their process is for accepting offers. Since banks typically 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 terminate the offer if you find it. As with making any offer on real estate, providing documentation showing your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've made your offer, it's customary for the bank to counter offer. From there it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Your deal might be settled in one 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. Nextage UpTown Realty is accustomed to these situations and will work to ensure there are no undue delays.