Interested in REO Listings In Hernando County Florida or a foreclosure in Hernando County?
What’s an REO?
“REO” or Real Estate Owned are properties which have completed the foreclosure process and are currently owned by the bank or mortgage company. This is different than real estate 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 added during the foreclosure process. The buyer must also be able to pay with cash in hand. Finally, you’ll accept the property 100% as is.That could involve existing liens and even current denizens that need to be evicted. This process is generally known as “buying on the court house steps” This can be a very risky process and is generally more reserved for experienced investors with large capital and experience who also usually have a higher risk tollerance and is usally not for the amateur.
A bank-owned property, by contrast, is a more tidy and attractive option. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The bank will see to the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing. These are generally listed for sale in the local Hernando MLS systems, and can be a great value when acompanied with the guidance of an experienced realtor such as Tina Fingerman.
Note that REOs may be exempt from typical disclosure requirements. For example, in Florida, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to tell you about any defects they are informed of. By hiring Agent Trust Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Am I assured a low price when purchasing a Foreclosure property in Hernando County?
It is frequently believed that any REO must be a good deal and an opportunity for easy money. This isn’t always true. You have to be prudent about buying a repossession if your intent is make money. While it’s true that the bank is often eager to offload it promptly, they are also motivated to minimize any losses.
When considering what to pay for a foreclosure, 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 and selling foreclosures. However there are also many REOs that are not good buys and may not be money makers.
Most banks have a department dedicated to REO that you’ll work with when buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.
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 what they know concerning the condition of the property and what their process is for getting 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 unseen damage and retract the offer if you find it. If, as a buyer, you can provide documentation proving 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 respond with a counter offer. At this point it will be your decision whether to accept their counter, or offer a counter to the counter offer. Be aware, you’ll be dealing with a process that probably involves a group of people at the bank, and they don’t work evenings or weekends. It’s not unusual for the process of offers and counter offers to take days or even weeks. Agent Trust Realty 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.
Contact Steve Fingerman
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