Making an offer on REO property or a foreclosure in Englewood?


	Just as with any home purchase, your wisest move is to hire a professional real estate agent.

What is an REO?

"REO" or Real Estate Owned are homes which have completed the foreclosure process that the bank or mortgage company now owns. This is not the same as real estate up for foreclosure auction. The Sunnybrook Realty LLC has experience to share with foreclosures and bank owned properties in Englewood, Florida

The Sunnybrook Realty LLC has experience to share with foreclosures and bank owned properties in Englewood, Florida

If you buy 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. And on top of all that, you'll receive the property entirely as is. That may comprise of current liens and even current denizens that need to be expelled.

A bank-owned property, on the other hand, is a more tidy and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The bank will attend to 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.

Do be aware that REOs may be exempt from standard disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that normally requires sellers to reveal any defects they are knowledgeable of. By hiring The Sunnybrook Realty LLC, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Are REO properties a bargain in Charlotte County?

It's occasionally assumed that any foreclosure must be a good deal and a chance for easy money. This often isn't true. You have to be cautious about buying a repossession if your intent is make money. While it's true that the bank is typically anxious to offload it quickly, they are also looking to minimize any losses.

The Sunnybrook Realty LLC has experience to share with foreclosures and bank owned properties in Englewood, Florida

When pondering what to pay for 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. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

Time to make an offer?

Most mortgage companies have a department 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.

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 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 secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any type of real estate offer.)

Once 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 submit another counter offer. Be aware, 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 typical for the process of offers and counter offers to take days or even weeks. The Sunnybrook 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.