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Looking for REO property or a foreclosure in Dunedin?
Just as with any home purchase, your smartest move is to hire a professional real estate agent.
What's an REO?
"REO" is short for Real Estate Owned. These are homes which have been foreclosed upon that the bank or mortgage company currently owns. This is not the same as real estate up for foreclosure auction.
When buying 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. You must also be willing to pay with cash in hand. To top everything off, you'll receive the property totally as is. That possibly may consist of prevailing liens and even current tenants that need to be evicted.
A bank-owned property, by contrast, is a much neater and attractive proposition. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The bank will handle 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.
Note that REOs may be exempt from normal disclosure requirements. In California, for example, banks are not required to give a Transfer Disclosure Statement, a document that normally requires sellers to reveal any defects of which they are informed. By hiring Charlie Earhart Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in Dunedin a bargain?
It is occasionally assumed that any REO must be a bargain and a chance for easy money. This simply isn't true. You have to be cautious about buying a repossession if your intent is to make money off of it. While it's true that the bank is usually eager to sell it promptly, they are also motivated to minimize any losses.
When contemplating 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. It is possible to find REOs with money-making potential, 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.
Prepared to make an offer?
Most banks 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.
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 what they know concerning the condition of the property and what their process is for getting offers. Since banks typically sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for hidden damage and retract the offer if you find it. As with making any offer on real estate, providing documentation proving your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.
After you've made your offer, it's customary for the bank to make a counter offer. At this point it will be up to you to decide 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 give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Charlie Earhart Realty is accustomed to these situations and will work to ensure there are no undue delays.