Interested in REO property or a foreclosure in Jacksonville?
Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
Should you have any questions regarding real estate in Jacksonville, Florida, call me or send me an e-mail.
What's an REO?
"REO" or Real Estate Owned are houses which have gone through foreclosure that the bank or mortgage company currently owns. This is different than 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 accrued during the foreclosure process. The buyer must also be willing to pay with cash in hand. Finally, you'll get the property 100% as is. That might include existing liens and even current residents that need to be put out.
A bank-owned property, by contrast, is a more tidy and attractive proposition. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The bank will see to 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.
You should be aware that REOs may be exempt from normal disclosure requirements.
For instance, in California, banks do not have to give a Transfer Disclosure Statement,
a document that usually requires sellers to disclose any defects they are aware of.
By hiring Personal Service Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Am I guaranteed a bargain when buying a bank owned property in Jacksonville?
It is sometimes presumed that any REO must be a bargain and a possibility for easy money. This frequently isn't true. You have to be prudent about buying a repossession if your intent is make a profit. While it's true that the bank is often eager to offload it soon, they are also looking to minimize any losses.
When contemplating what to pay for 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.
There are bargains with potential to make money, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and may lose money.
Prepared to make an offer?
Most banks 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 often hire 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 regarding the condition of the property and what their process is for taking offers. Since banks almost always sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unknown damage and retract the offer if you find it.
If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any type of real estate offer.)
After you've presented your offer, it's customary for the bank to respond with a counter offer. From there it will be your choice whether to accept their counter, or offer a counter to the counter offer.
Your deal could be final 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. Personal Service Realty is accustomed to these situations and will work to ensure there are no unnecessary delays.
Personal Service Realty 4083 Sunbeam Rd Apt 1701 Jacksonville, FL 32257-7518
When contemplating what to pay for 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.
There are bargains with potential to make money, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and may lose money.
