Looking for REO property or a foreclosure in Weston?
Investing in a bank-owned property is not something to be taken lightly. If you have any questions regarding real estate in Weston, Florida, call me or send me an e-mail.
What's an REO?
"REO" means Real Estate Owned. These are properties which have been foreclosed upon and are currently held by the bank or mortgage company. 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 added during the foreclosure process. You must also be able to pay with cash in hand. Finally, you'll get the property entirely as is. That may comprise of prevailing liens and even current residents that need to be kicked out.
A bank-owned property, on the other hand, is a more tidy and attractive transaction. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will attend to 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.
Take notice that REOs may be exempt from typical disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to disclose any defects of which they are knowledgeable. By hiring Dianne Denis Real Estate, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Are REO properties a bargain in Broward County?
It is occasionally thought that any foreclosure must be a good deal and a possibility for easy money. This isn't necessarily the case. You have to be prudent about buying a repossession if your intent is to make money off of it. While it's true that the bank is typically anxious to sell it quickly, they are also looking to minimize any losses.
Look closely at the listing and sales prices of similar 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. There are bargains with potential to make money, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.
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 about the condition of the property and what their process is for accepting offers. Since banks usually sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for hidden damage and retract the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
After you've submitted your offer, it's customary for the bank to make a counter offer. Then it will be your decision whether to accept their counter, or offer a counter to the counter offer. Understand, you'll be working with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's not unusual for there to be days or even weeks of negotiating back and forth. Dianne Denis is used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.
Look closely at the listing and sales prices of similar 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. There are bargains with potential to make money, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.
