Buying REO property or a foreclosure in Port St Lucie?
Savvy consumers will turn to a seasoned pro when considering a foreclosed property.
If you have any questions regarding real estate in Port St Lucie, Florida, call me or send me an e-mail.
What's an REO?
"REO" or Real Estate Owned are properties which have gone through foreclosure and are currently held by the bank or mortgage company. This differs from a property 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. The buyer must also be able to pay with cash in hand. To top everything off, you'll accept the property 100% as is. That may include prevailing liens and even current denizens that need to be expelled.
A bank-owned property, by contrast, is a more tidy and attractive transaction. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will handle 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.
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 usually requires sellers to tell you about any defects they are informed of.
By hiring Coldwell Banker Thomas J. White, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in Port St Lucie a bargain?
It's frequently thought that any REO must be a steal and a possibility for guaranteed profit. This isn't always true. You have to be very careful about buying a REO if your intent is to make money off of it. Even though the bank is usually anxious to sell it quickly, they are also looking to minimize any losses.
Look closely at the listing and sales prices of comparable homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades 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 not likely to turn a profit.
Prepared to make an offer?
Most lenders have staff dedicated to REO that you'll work with while buying REO property from them. Typically 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 find out as much as you can about their knowledge regarding the condition of the property and what their process is for taking offers. Since banks most commonly 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 unseen damage and terminate 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.
Once you've presented your offer, it's customary for the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or make another counter offer.
Your transaction could be settled in one day, but that's rare. 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. Coldwell Banker Thomas J. White is accustomed to these situations and will work to ensure there are no undue delays.
Coldwell Banker Thomas J. White 1555 St. Lucie West Blvd. Port St Lucie, FL 34986
Look closely at the listing and sales prices of comparable homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades 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 not likely to turn a profit.
