Making an offer on REO property or a foreclosure in Saint Petersburg?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional.

What is an REO?

"REO" or Real Estate Owned are properties which have gone through foreclosure and are currently possessed by the bank or mortgage company. This is unlike a property up for foreclosure auction. RE/MAX Action First has experience to share with foreclosures and bank owned properties in Saint Petersburg, Florida

RE/MAX Action First has experience to share with foreclosures and bank owned properties in Saint Petersburg, Florida

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 ready to pay with cash in hand. And on top of all that, you'll receive the property 100% as is. That possibly will consist of existing liens and even current residents that need to be kicked out.

A bank-owned property, conversely, is a more tidy and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will deal with 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.

Note that REOs may be exempt from standard disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to disclose any defects of which they are aware. By hiring RE/MAX Action First, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I guaranteed a low price when purchasing a bank owned property in Saint Petersburg?

It is commonly assumed that any foreclosure must be a steal and a possibility for guaranteed profit. This often isn't true. You have to be cautious about buying a repossession if your intent is make money. Even though the bank is often anxious to sell it promptly, they are also looking to minimize any losses.

RE/MAX Action First has experience to share with foreclosures and bank owned properties in Saint Petersburg, Florida

Look carefully at the listing and sales prices of competing properties 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. 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 not be money makers.

All set to make an offer?

Most mortgage companies have a department 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 often use 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 their knowledge regarding the condition of the property and what their process is for accepting offers. Since banks most commonly sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unseen damage and cancel the offer if you find it. If, as a buyer, you can provide documentation demonstrating 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 type of real estate offer.)

After you've submitted your offer, you can expect the bank to counter offer. From there it will be your decision whether to accept their counter, or make another counter offer. Your deal could 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.