Looking for REO property or a foreclosure in Pembroke Pines?
Making an offer on a bank-owned property is not something to be taken lightly.
If you have questions regarding real estate in Pembroke Pines, Florida, call us
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What is an REO?
"REO" or Real Estate Owned are properties which have completed the foreclosure process that the bank or mortgage company presently holds. This is different than 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 able to pay with cash in hand. To top everything off, you'll accept the property completely as is. That might involve existing liens and even current tenants that may require eviction.
A bank-owned property, by contrast, is a much neater and attractive option. The REO property didn't 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 prepare for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from typical disclosure requirements.
For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement,
a document that typically requires sellers to tell you about any defects they are knowledgeable of.
By hiring LMG Realty, Inc, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Am I guaranteed a bargain when purchasing a bank owned property in Pembroke Pines?
It's sometimes assumed that any REO must be a steal and a possibility for easy money. This often isn't true. You have to be prudent about buying a repossession if your intent is to make money. Even though the bank is often eager to offload it promptly, they are also looking to minimize any losses.
When pondering the value of 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.
There are bargains with potential to make money, and many people do very well buying and selling foreclosures. But, there are also many REOs that are not good buys and not likely to turn a profit.
Prepared to make an offer?
Most mortgage companies have a department dedicated to REO that you'll work with in buying REO property from them. Typically 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 taking offers. Since banks almost always sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unknown damage and cancel the offer if you find it.
As with making any offer on real estate, providing documentation showing 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, you can expect the bank to respond with a counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer.
Your transaction could be settled 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.