Foreclosures happen. Payments get missed and bank’s end up foreclosing on homeowners to get their property back.  When a bank repossess a property and takes it back into their inventory it is known as an real estate owned  “REO” property.

An REO is an attractive proposition to many. Since the bank is the legal owner, they  will take care of any back owed
taxes, evictions (if any), and ensure you a “free and clear” title (i.e. they will generally prepare the issuance of a title insurance policy at closing).

However, not all REOs are considered “good deals.” Look carefully at the listing and sales prices of competing homes in the neighborhood when making an offer on an REO.  Also, factor in any repairs or remodeling necessary to prepare the house to make it “move in” condition.

There are tons of bargains in the marketplace with potential to make great money but there are also many REOs that are not good buys and not likely to turn a profit.  Therefore, prior to making an offer you’ll want to contact either the listing agent (ex-Florida Capital Realty agent) or the 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 accepting offers.

Since banks most commonly sell REO properties “as is”, you may want to include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find any.  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 holds for any type of real estate offer).

Once you’ve made 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 offer a counter to the counter offer.  Be aware, you’ll be working with a process that usually involves multiple 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.  Therefore, you need  a seasoned brokerage firm to represent you.

At Florida Capital Realty all of our agents are accustomed to these situations, work 24-7, and will ensure there are no undue delays.  Most importantly, all of our agents know the system inside and out and are dedicated to getting you the best possible price.  Therefore if you see a foreclosured property or REO that you want to purchase, contact us today so we can help you move into your dream home immediately: 888-846-4846