Making an offer on REO property or a foreclosure in Bradenton?


	Making an offer on a bank-owned property is not something to be taken lightly. For more information, you can contact me through my site or e-mail me. I'm happy to answer questions you have regarding real estate foreclosures.

What is an REO?

"REO" is an abbreviation for Real Estate Owned. These are homes which have been foreclosed upon and are presently owned by the bank or mortgage company. This is not the same as a property up for foreclosure auction. Pinnacle Properties of Keller Williams On The Water has experience to share with foreclosures and bank owned properties in Bradenton, Florida

Pinnacle Properties of Keller Williams On The Water has experience to share with foreclosures and bank owned properties in Bradenton, 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. The buyer must also be ready to pay with cash in hand. To top everything off, you'll get the property entirely as is. That could consist of current liens and even current denizens that may require eviction.

A bank-owned property, by contrast, is a more tidy and attractive deal. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The lender will deal with the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Note that REOs may be exempt from standard 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 aware. By hiring Pinnacle Properties of Keller Williams On The Water, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I assured a low price when purchasing an REO property in Bradenton?

It's occasionally presumed that any foreclosure must be a bargain and a possibility for easy money. This isn't always true. You have to be very careful about buying a repossession if your intent is make a profit. While it's true that the bank is often anxious to sell it soon, they are also looking to get as much as they can for it.

Pinnacle Properties of Keller Williams On The Water has experience to share with foreclosures and bank owned properties in Bradenton, Florida

Look carefully at the listing and sales prices of comparable homes in the neighborhood when making an offer on 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 flipping foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.

Prepared to make an offer?

Most banks have a department 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 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 learn as much as you can about what they know about 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 withdraw the offer if you find it. If, as a buyer, you can provide documentation showing your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any real estate offer.)

Once you've submitted your offer, you can expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or make another counter offer. Your transaction could be final in one 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. Pinnacle Properties of Keller Williams On The Water is accustomed to these situations and will work to ensure there are no undue delays.