Looking for REO property or a foreclosure in Plantation?


	Purchasing a bank-owned property is not something to be taken lightly.

What is an REO?

"REO" or Real Estate Owned are homes which have completed the foreclosure process and are currently held by the bank or mortgage company. This is different than a property up for foreclosure auction. Pat Hance & Co., Inc. has experience to share with foreclosures and bank owned properties in Plantation, Florida

Pat Hance & Co., Inc. has experience to share with foreclosures and bank owned properties in Plantation, Florida

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 get the property 100% as is. That might consist of prevailing liens and even current tenants that need to be removed.

A bank-owned property, on the other hand, is a much neater and attractive proposition. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The lender will handle the removal of tax liens, evict occupants if needed and generally organize 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 California, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to disclose any defects of which they are knowledgeable. By hiring Pat Hance & Co., Inc., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I guaranteed a low price when purchasing an REO property in Plantation?

It's occasionally presumed that any foreclosure must be a steal and an opportunity for guaranteed profit. This frequently isn't true. You have to be cautious about buying a REO if your intent is to make money off of it. While it's true that the bank is often anxious to offload it quickly, they are also motivated to get as much as they can for it.

Pat Hance & Co., Inc. has experience to share with foreclosures and bank owned properties in Plantation, Florida

Look carefully at the listing and sales prices of similar 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 buying foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

Ready to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will usually contract with a listing agent.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about what they know regarding the condition of the property and what their process is for getting offers. Since banks usually 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 hidden damage and cancel 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 real estate offer.)

After you've made your offer, it's customary for the bank to respond with 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 settled in one day, but that's usually not the case. 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.