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


	Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property.

What is an REO?

"REO" stands for Real Estate Owned. These are houses which have completed the foreclosure process and are now owned by the bank or mortgage company. This is different than a property up for foreclosure auction. Hitson Realty, Inc. has experience to share with foreclosures and bank owned properties in Jasper, Florida

Hitson Realty, Inc. has experience to share with foreclosures and bank owned properties in Jasper, Florida

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. You must also be ready to pay with cash in hand. To top everything off, you'll receive the property totally as is. That possibly may comprise of current liens and even current tenants that may require expulsion.

A bank-owned property, by contrast, is a more tidy and attractive deal. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The bank will see to the elimination of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from normal disclosure requirements. For instance, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to tell you about any defects they are informed of. By hiring Hitson Realty, Inc., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Is REO property in Jasper a bargain?

It is commonly thought that any foreclosure must be a good deal and an opportunity for easy money. This isn't necessarily true. You have to be prudent about buying a repossession if your intent is profit from the sale. While it's true that the bank is usually eager to offload it promptly, they are also motivated to get as much as they can for it.

Hitson Realty, Inc. has experience to share with foreclosures and bank owned properties in Jasper, Florida

When pondering the value of 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 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 staff dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will often contract with a listing agent.

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 their knowledge concerning the condition of the property and what their process is for taking offers. Since banks usually sell REO properties "as is", you'll want to be sure and 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 is generally true for any type of real estate offer.)

Once you've presented your offer, you can expect the bank to counter offer. At this point 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 working with a process that probably involves a group of people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks.