Purchasing REO property or a foreclosure in Umatilla?


	Just as with any property purchase, your smartest move is to hire a professional real estate agent. For more information, simply contact me through my site or e-mail me. I'm glad to answer questions you have about real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are homes which have gone through foreclosure and are now held by the bank or mortgage company. This is not the same as a property up for foreclosure auction. Silver Beach Realty, LLC has experience to share with foreclosures and bank owned properties in Umatilla, Florida

Silver Beach Realty, LLC has experience to share with foreclosures and bank owned properties in Umatilla, 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. The buyer must also be willing to pay with cash in hand. To top everything off, you'll get the property 100% as is. That could comprise of existing liens and even current denizens that need to be thrown out.

A bank-owned property, on the other hand, is a much cleaner and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The lender will take care of 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.

You should be aware that REOs may be exempt from normal disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to reveal any defects of which they are informed. By hiring Silver Beach Realty, LLC, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Are REO properties a bargain in Umatilla?

It is frequently thought that any REO must be a steal and a chance for guaranteed profit. This isn't necessarily the case. You have to be very careful about buying a repossession if your intent is make a profit. While it's true that the bank is typically anxious to offload it quickly, they are also looking to get as much as they can for it.

Silver Beach Realty, LLC has experience to share with foreclosures and bank owned properties in Umatilla, Florida

Look carefully at the listing and sales prices of competing properties in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with when buying REO property from them. Commonly 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 discover as much as you can about what they know regarding the condition of the property and what their process is for getting offers. Since banks usually sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unseen damage and cancel 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.)

After you've submitted your offer, you can expect the bank to counter offer. From there it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Understand, 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 typical for the process of offers and counter offers to take days or even weeks.