Interested in REO property or a foreclosure in Fort Lauderdale?
Just as with any home purchase, your smartest move is to hire a professional real estate agent. If you have questions regarding real estate in Fort Lauderdale, Florida, call me or send me an e-mail.
What's an REO?
"REO" is Real Estate Owned. These are homes which have completed the foreclosure process that the bank or mortgage company now possesses. This is different than a property 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 accrued during the foreclosure process. The buyer must also be ready to pay with cash in hand. To top everything off, you'll receive the property 100% as is. That possibly will include current liens and even current occupants that need to be kicked out.
A bank-owned property, conversely, is a much neater and attractive deal. 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 standard disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to disclose any defects of which they are knowledgeable. By hiring Rosendal-Smith-Pardo International Realty, LLC, 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 Fort Lauderdale?
It's commonly thought that any REO must be a good deal and a possibility for easy money. This often isn't true. You have to be very careful about buying a repossession if your intent is profit from the sale. Even though the bank is usually eager to offload it fast, they are also looking to get as much as they can for it.
When considering what to pay for REO property, you need to look closely at 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 flipping foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.
Ready to make an offer?
Most banks have a department 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 discover as much as you can about what they know regarding the condition of the property and what their process is for taking offers. Since banks typically 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 retract 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.)
Once you've submitted your offer, it's customary for the bank to counter offer. From there it will be your decision whether to accept their counter, or make another counter offer. Realize, you'll be contending with a process that most likely involves multiple people at the bank, and they don't work evenings or weekends. It's quite common for there to be days or even weeks of negotiating back and forth. Rosendal-Smith-Pardo International Realty, LLC is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.
Rosendal-Smith-Pardo International Realty, LLC may List, Offer, Consult or recommend a professional who assists with Short Sale properties. To our current and potential clients and customers we make the following notice. IMPORTANT NOTICE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us according to any listing agreement and/or consultation service agreement. If you stop paying your mortgage, you could loose your home and damage your credit rating. (16 C.F.R. € 322.4(b))
When considering what to pay for REO property, you need to look closely at 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 flipping foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.
