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Looking for REO property or a foreclosure in Tampa?
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Just as with any home purchase, your smartest move is to hire a professional real estate agent. For more information, simply contact me through my site or e-mail me. I'm happy to answer questions you have regarding real estate foreclosures. |
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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 possesses. This is not the same as 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 added during the foreclosure process. The buyer must also be able to pay with cash in hand. And on top of all that, you'll accept the property completely as is. That possibly could comprise of standing liens and even current tenants that need to be removed.
A bank-owned property, on the contrary, is a much cleaner and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. Now the bank 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.
Do be aware that REOs may be exempt from normal disclosure requirements. In California, for example, banks do not have to give a Transfer Disclosure Statement, a document that typically requires sellers to reveal any defects they are informed of. By hiring The Perkins Team Keller Williams Tampa Properties, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Am I assured a bargain when investing in a bank owned property in Tampa?It's occasionally assumed that any REO must be a steal and a possibility for guaranteed profit. This isn't always the case. 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 typically anxious to sell it promptly, they are also looking to get as much as they can for it.
 Look carefully at the listing and sales prices of competing properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and may not be money makers.
Time to make an offer?Most lenders have a department dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will often use a listing agent.
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 getting offers. Since banks almost always sell REO properties "as is", it may be in your best interest 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. If, as a buyer, you can provide documentation demonstrating your ability to secure financing, 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 real estate offer.)
Once you've made your offer, you can expect the bank to counter offer. Then it will be your decision whether to accept their counter, or make another counter offer. Understand, you'll be dealing with a process that usually involves several people at the bank, and they don't work evenings or weekends. It's not uncommon for there to be days or even weeks of going back and forth.
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