Where Your Property Is Our Prime Concern
Real Estate Glossary
Why Choose Me!
Search the MLS
Selling Your Home
Reasons Homes Don't Sell
Selling One, Buying Another
Selling your own home
Setting the Sales Price
Free Home Valuation
9 Steps to Owning
Find A Home!
First Time Buyers
Home Buyer Checklist
Why Title Insurance?
Bank Owned Property
Applying for a Loan
Closing costs - loans
Closing costs - Ins.
Contingencies in Contracts
Loan App Checklist
Tax Closing Costs
Improvements That Pay
Curb Appeal List
Mold in the Home
Why an inspection?
Looking for REO property or a foreclosure in Plantation?
Just as with any home purchase, your smartest move is to hire a professional real estate agent. For more information, just
through my site or
. I'm happy to answer questions you have about real estate foreclosures.
What's an REO?
"REO" or Real Estate Owned are properties which have been foreclosed upon and are now owned by the bank or mortgage company. This is not the same as 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 accrued during the foreclosure process. The buyer must also be willing to pay with cash in hand. Finally, you'll receive the property completely as is. That possibly may include current liens and even current denizens that may require removal.
A bank-owned property, by contrast, is a more tidy and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will deal with 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 example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to tell you about any defects they are knowledgeable of. By hiring All Prime Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in Plantation a bargain?
It is occasionally believed that any REO must be a good deal and a possibility for easy money. This frequently isn't true. You have to be very careful about buying a REO if your intent is make a profit. Even though the bank is usually anxious to offload it soon, they are also motivated to get as much as they can for it.
When pondering what to pay for REO property, you need to look closely at 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. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and may lose money.
All set to make an offer?
Most lenders have a department dedicated to REO that you'll work with in buying REO property from them. Commonly the REO department will use a listing agent to get their REO properties listed on the local MLS.
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 regarding the condition of the property and what their process is for getting 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 unknown damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any real estate offer.)
Once you've made your offer, you can expect the bank to counter offer. Then it will be your choice whether to accept their counter, or make another counter offer. Your deal might be settled in one day, but that's rare. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. All Prime Realty is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.