Making an offer on REO property or a foreclosure in Delray Beach?


	Investing in a bank-owned property is not something to be taken casually.

What's an REO?

"REO" means Real Estate Owned. These are homes which have been foreclosed upon and are presently owned by the bank or mortgage company. This differs from real estate up for foreclosure auction. D'Addio Realty has experience to share with foreclosures and bank owned properties in Delray Beach, Florida

D'Addio Realty has experience to share with foreclosures and bank owned properties in Delray Beach, 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. To top everything off, you'll receive the property totally as is. That possibly will comprise of prevailing liens and even current occupants that may require eviction.

A bank-owned property, conversely, is a much cleaner and attractive option. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The bank will attend 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 typical disclosure requirements. In California, for example, banks do not have to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to reveal any defects they are aware of. By hiring D'Addio Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I guaranteed a good deal when buying a bank owned property in Delray Beach?

It's 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 a profit. Even though the bank is typically eager to offload it fast, they are also motivated to get as much as they can for it.

D'Addio Realty has experience to share with foreclosures and bank owned properties in Delray Beach, Florida

When considering what to pay for a foreclosure, you need to look closely at 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 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 in buying REO property from them. Normally 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 find out as much as you can about their knowledge regarding the condition of the property and what their process is for receiving 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 terminate the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

Once you've submitted your offer, it's customary for the bank to respond with a counter offer. From there it will be your decision whether to accept their counter, or submit another counter offer. Understand, you'll be contending with a process that usually involves multiple people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of negotiating back and forth. D'Addio 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.