Purchasing REO property or a foreclosure in Brandon?


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

What is an REO?

"REO" or Real Estate Owned are homes which have been through foreclosure that the bank or mortgage company now holds. This is unlike real estate up for foreclosure auction. The Property Manager, Inc. has experience to share with foreclosures and bank owned properties in Brandon, Florida

The Property Manager, Inc. has experience to share with foreclosures and bank owned properties in Brandon, Florida

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. You must also be prepared to pay with cash in hand. And on top of all that, you'll accept the property entirely as is. That possibly could include prevailing liens and even current residents that need to be put out.

A bank-owned property, on the other hand, is a much cleaner and attractive option. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The bank will handle the removal of tax liens, evict occupants if needed and generally plan 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 are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects of which they are knowledgeable. By hiring The Property Manager, Inc., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I assured a low price when purchasing a bank owned property in Brandon?

It's sometimes assumed that any REO must be a bargain and a chance for easy money. This often isn't true. You have to be very careful about buying a REO if your intent is make money. While it's true that the bank is usually anxious to sell it soon, they are also motivated to get as much as they can for it.

The Property Manager, Inc. has experience to share with foreclosures and bank owned properties in Brandon, Florida

When contemplating the value of REO property, 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 foreclosures. However there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most banks have staff dedicated to REO that you'll work with while buying REO property from them. Commonly the REO department will use a listing agent to get their REO properties listed on the local MLS.

Prior to 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 getting offers. Since banks almost always 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 terminate 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 real estate offer.)

After you've made your offer, it's customary for the bank to counter offer. Then it will be your choice whether to accept their counter, or make another counter offer. Realize, you'll be dealing with a process that probably involves several people at the bank, and they don't work evenings or weekends. It's not uncommon for there to be days or even weeks of negotiating back and forth.