Purchasing REO property or a foreclosure in Saint Petersburg?
Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
If you have questions regarding real estate in Saint Petersburg, Florida, call me or send me an e-mail.
What's an REO?
"REO" or Real Estate Owned are homes which have gone through foreclosure and are currently held by the bank or mortgage company. This is not the same as real estate up for foreclosure auction.
If you buy 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 prepared to pay with cash in hand. Finally, you'll get the property totally as is. That possibly will include current liens and even current tenants that need to be expelled.
A bank-owned property, conversely, is a much cleaner and attractive deal. The REO property did not find a buyer during foreclosure auction. Now the bank owns it. The lender will take care of the removal of tax liens, evict occupants if needed and generally arrange 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 Nevada, it is optional for foreclosures to have a Property Disclosure Statement,
a document that usually requires sellers to reveal any defects of which they are informed.
By hiring Accent Real Estate Pros, Inc., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Am I guaranteed a bargain when purchasing a bank owned property in Saint Petersburg?
It is commonly assumed that any REO must be a bargain and a possibility for easy money. This isn't always the case. You have to be very careful about buying a REO if your intent is profit from the sale. Even though the bank is typically anxious to offload it fast, they are also motivated to minimize any losses.
When pondering what to pay for 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.
The bargains with money making potential exist, and many people do very well flipping foreclosures. Still there are also many REOs that are not good buys and may not be money makers.
Time to make an offer?
Most lenders have staff dedicated to REO that you'll work with in buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.
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 their knowledge regarding the condition of the property and what their process is for receiving offers. Since banks typically sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unknown damage and cancel the offer if you find it.
As with making any offer on real estate, providing documentation proving 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, you can expect the bank to counter offer. From there it will be up to you to decide whether to accept their counter, or make another counter offer.
Your transaction might be settled in a single 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. Accent Real Estate Pros, Inc. is accustomed to these situations and will work to ensure there are no unnecessary delays.
Accent Real Estate Pros, Inc. 3221 Tyrone Blvd. N. Saint Petersburg, FL 33710
When pondering what to pay for 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.
The bargains with money making potential exist, and many people do very well flipping foreclosures. Still there are also many REOs that are not good buys and may not be money makers.
