Purchasing REO property or a foreclosure in Clearwater?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. Should you have questions about real estate in Clearwater, Florida, call me or send me an e-mail.

What's an REO?

"REO" or Real Estate Owned are houses which have completed the foreclosure process that the bank or mortgage company currently owns. This differs from real estate up for foreclosure auction. Charles Rutenberg Realty Inc. has experience to share with foreclosures and bank owned properties in Clearwater, Florida

Charles Rutenberg Realty Inc. has experience to share with foreclosures and bank owned properties in Clearwater, Florida

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 prepared to pay with cash in hand. And on top of all that, you'll accept the property totally as is. That possibly will comprise of prevailing liens and even current denizens that may require expulsion.

A bank-owned property, by contrast, is a much cleaner and attractive option. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will see to 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.

Take notice that REOs may be exempt from standard disclosure requirements. In California, for example, banks are not required to give a Transfer Disclosure Statement, a document that normally requires sellers to reveal any defects of which they are aware. By hiring Charles Rutenberg Realty Inc., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Are REO properties a bargain in Pinellas County?

It is frequently assumed that any foreclosure must be a good buy and a possibility for easy money. This often isn't true. You have to be cautious about buying a repossession if your intent is to make money off of it. Even though the bank is typically anxious to offload it quickly, they are also looking to get as much as they can for it.

Charles Rutenberg Realty Inc. has experience to share with foreclosures and bank owned properties in Clearwater, Florida

Look closely at the listing and sales prices of competing properties 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 and selling foreclosures. But there are also many REOs that are not good buys and may lose money.

Ready to make an offer?

Most banks have a department 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 learn as much as you can about what they know regarding the condition of the property and what their process is for taking offers. Since banks almost always sell REO properties "as is", you may want 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 demonstrating 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 submitted your offer, it's customary for the bank to counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Realize, you'll be dealing with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's not unusual for there to be days or even weeks of going back and forth. Charles Rutenberg Realty Inc. is accustomed to these situations and will work to ensure there are no undue delays.