Looking for REO property or a foreclosure in Bradenton?


	Investing in a bank-owned property is not something to be taken casually. 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 properties which have gone through foreclosure and are now possessed by the bank or mortgage company. This is not the same as real estate up for foreclosure auction. Michael Saunders & Co. - Licensed Real Estate Broker has experience to share with foreclosures and bank owned properties in Bradenton, Florida

Michael Saunders & Co. - Licensed Real Estate Broker has experience to share with foreclosures and bank owned properties in Bradenton, 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 able to pay with cash in hand. And on top of all that, you'll get the property completely as is. That possibly could involve existing liens and even current occupants that need to be removed.

A bank-owned property, on the contrary, is a much cleaner and attractive option. The REO property did not 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 organize 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 example, in California, banks are not required to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are aware. By hiring Michael Saunders & Co. - Licensed Real Estate Broker, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I guaranteed a good deal when investing in an REO property in Bradenton?

It is commonly presumed that any foreclosure must be a good deal and a chance for easy money. This isn't necessarily true. You have to be prudent about buying a REO if your intent is profit from the sale. Even though the bank is usually anxious to offload it fast, they are also looking to get as much as they can for it.

Michael Saunders & Co. - Licensed Real Estate Broker has experience to share with foreclosures and bank owned properties in Bradenton, Florida

Look closely at the listing and sales prices of comparable properties in the neighborhood when considering the purchase of 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 buying foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Time to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with while buying REO property from them. Usually 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 discover as much as you can about their knowledge concerning the condition of the property and what their process is for accepting offers. Since banks most commonly sell REO properties "as is", you may want 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 made your offer, you can expect the bank to make a counter offer. At this point it will be your choice whether to accept their counter, or submit another counter offer. Be aware, you'll be dealing 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 going back and forth. Michael Saunders & Co. - Licensed Real Estate Broker 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.