Looking for REO property or a foreclosure in Sugarloaf Key?


	Just as with any home purchase, your wisest move is to hire a professional real estate agent. For more information, you can contact me through my site or e-mail me. I'm glad to answer any questions you have about real estate foreclosures.

What's an REO?

"REO" stands for Real Estate Owned. These are homes which have completed the foreclosure process and are presently possessed by the bank or mortgage company. This is unlike a property up for foreclosure auction. Mia Howe Realty has experience to share with foreclosures and bank owned properties in Sugarloaf Key, Florida

Mia Howe Realty has experience to share with foreclosures and bank owned properties in Sugarloaf Key, Florida

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. You must also be able to pay with cash in hand. To top everything off, you'll get the property 100% as is. That possibly may consist of standing liens and even current residents that need to be expelled.

A bank-owned property, on the contrary, is a more tidy and attractive proposition. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The lender will deal with the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from standard disclosure requirements. For example, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that usually requires sellers to reveal any defects they are aware of. By hiring Mia Howe Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I assured a bargain when buying a bank owned property in Sugarloaf Key?

It is occasionally presumed that any foreclosure must be a good deal and an opportunity for guaranteed profit. This frequently isn't true. You have to be cautious about buying a REO if your intent is profit from the sale. Even though the bank is often eager to sell it quickly, they are also motivated to get as much as they can for it.

Mia Howe Realty has experience to share with foreclosures and bank owned properties in Sugarloaf Key, Florida

Look carefully at the listing and sales prices of similar homes in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. The bargains with money making potential exist, 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 mortgage companies have staff dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will usually contract with a listing agent.

Before 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 about the condition of the property and what their process is for accepting offers. Since banks typically 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, providing documentation showing 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. Then it will be your choice whether to accept their counter, or make another counter offer. Your transaction might be settled in a single day, but that's usually not the case. 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. Mia Howe Realty is accustomed to these situations and will work to ensure there are no undue delays.