Interested in REO property or a foreclosure in Jensen Beach, Stuart or surrounding areas?
What's an REO?
"REO" is short for Real Estate Owned. These are houses which have been foreclosed upon that the bank or mortgage company currently possesses. This is different than 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. The buyer must also be ready to pay with cash in hand. Finally, you'll get the property completely as is. That might consist of standing liens and even current denizens that may require removal.
A bank-owned property, on the other hand, is a much cleaner and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The lender will attend to the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.
You should be aware that REOs may be exempt from typical disclosure requirements. For instance, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to make known any defects they are knowledgeable of. By hiring Welcome Home Realty International, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in Jensen Beach a bargain?
It's commonly assumed that any foreclosure must be a good buy and an opportunity for easy money. This isn't always true. You have to be prudent about buying a REO if your intent is to profit from the sale. Even though the bank is usually eager to sell it promptly, they are also looking to get as much as they can for it.
When pondering 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 buying and selling foreclosures. However, there are also many REOs that are not good buys and may lose money.
All set to make an offer?
Most mortgage companies have a department 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 what they know about the condition of the property and what their process is for taking offers. Since banks typically sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unseen damage and cancel the offer if you find it. As with making any offer on real estate, providing documentation of your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.
After you've made your offer, it's customary for the bank to make a counter offer. At this point it will be your choice whether to accept their counter, or submit another counter offer. Understand, you'll be dealing with a process that probably involves multiple people at the bank, and they don't work evenings or weekends. It's not unusual for the process of offers and counter offers to take days or even weeks. Welcome Home Realty International is used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.
