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Looking for REO property or a foreclosure in Amelia Island?
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Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
For more information, you can contact me through my site or e-mail me. I'm glad to address any questions you have regarding real estate foreclosures.
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What is an REO?
"REO" is Real Estate Owned. These are homes which have been foreclosed upon that the bank or mortgage company presently owns. This is not the same as 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 amassed during the foreclosure process. The buyer must also be ready to pay with cash in hand. To top everything off, you'll get the property entirely as is. That possibly will consist of prevailing liens and even current residents that may require removal.
A bank-owned property, on the contrary, is a more tidy and attractive deal. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The bank will take care of the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from normal disclosure requirements.
For example, in California, banks are exempt from giving a Transfer Disclosure Statement,
a document that ordinarily requires sellers to disclose any defects of which they are aware.
By hiring Lois Jost - Sea Horse Properties, Inc., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in Amelia Island a bargain?
It's sometimes thought that any REO must be a good buy and a chance for guaranteed profit. This isn't always true. You have to be cautious about buying a repossession if your intent is make money. While it's true that the bank is usually anxious to offload it quickly, they are also motivated to get as much as they can for it.
Look carefully at the listing and sales prices of competing properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in.
It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and may lose money.
All set to make an offer?
Most lenders have a department dedicated to REO that you'll work with in 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 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 most commonly sell REO properties "as is", it's often prudent to 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, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
After you've submitted your offer, you can expect the bank to counter offer. From there it will be your decision whether to accept their counter, or make another counter offer.
Your deal could be final in a single day, but that's usually not the case. 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.
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