"REO" or Real Estate Owned are homes which have been foreclosed upon and are now owned by the bank or mortgage company. This is not the same as real estate up for foreclosure auction. G World Properties has experience to share with foreclosures and bank owned properties in Orlando, Florida. When buying 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 able to pay with cash in hand. To top everything off, you'll accept the property entirely as is. That possibly will involve existing liens and even current denizens that need to be thrown out. A bank-owned property, on the contrary, is a much cleaner and attractive proposition. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will see to the removal of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing. You should be aware that REOs may be exempt from typical disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to tell you about any defects of which they are informed. By hiring G World Properties, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
It's sometimes thought that any foreclosure must be a bargain and an opportunity for easy money. This isn't always the case. You have to be cautious about buying a repossession if your intent is make a profit. While it's true that the bank is typically anxious to sell it promptly, they are also looking to minimize any losses. G World Properties has experience to share with foreclosures and bank owned properties in Orlando, Florida When considering what to pay for REO property, 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. It is possible to find REOs with money-making potential, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and may lose money.
Most lenders have a department dedicated to REO that you'll work with while buying REO property from them. Typically 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 about the condition of the property and what their process is for getting offers.
Since banks most commonly 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 hidden damage and cancel the offer if you find it. As with making any offer on real estate, providing documentation of your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.
After you've presented your offer, you can expect the bank to respond with a counter offer. At this point it will be your decision whether to accept their counter, or make another counter offer. Your transaction might be final in a single day, but that's rare.
Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. G World Properties is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.