Interested in REO property or a foreclosure in Bradenton?
Making an offer on a bank-owned property is not something to be taken casually.
If you have any questions about real estate in Bradenton, Florida, call us
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What's an REO?
"REO" means Real Estate Owned. These are homes which have been foreclosed upon that the bank or mortgage company now possesses. This is unlike 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 amassed during the foreclosure process. You must also be ready to pay with cash in hand. Finally, you'll receive the property 100% as is. That might include standing liens and even current denizens that need to be put out.
A bank-owned property, by contrast, is a more tidy and attractive proposition. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The lender will take care of 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.
Note that REOs may be exempt from standard disclosure requirements.
In California, for example, banks are not required to give a Transfer Disclosure Statement,
a document that ordinarily requires sellers to disclose any defects of which they are aware.
By hiring Xena Vallone Realty Inc, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in Bradenton a bargain?
It's commonly thought that any REO must be a steal and a chance for guaranteed profit. This frequently isn't true. You have to be prudent about buying a repossession if your intent is to profit from the sale. While it's true that the bank is typically eager to sell it promptly, they are also motivated to get as much as they can for it.
Look closely at the listing and sales prices of comparable homes in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades 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. But, there are also many REOs that are not good buys and may lose money.
All set to make an offer?
Most lenders have staff 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 usually contract with 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 concerning the condition of the property and what their process is for accepting offers. Since banks usually 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 hidden damage and cancel the offer if you find it.
If, as a buyer, you can provide documentation showing your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any type of real estate offer.)
Once you've presented your offer, it's customary for the bank to respond with a counter offer. From there it will be up to you to decide whether to accept their counter, or submit another counter offer.
Realize, you'll be contending with a process that probably involves a group of people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks.