Interested in REO property or a foreclosure in Jensen Beach?


	Just as with any property purchase, your wisest move is to hire a professional real estate agent.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are houses which have been through foreclosure and are now held by the bank or mortgage company. This is unlike a property up for foreclosure auction. The Keyes Company/Realtors has experience to share with foreclosures and bank owned properties in Jensen Beach, Florida

The Keyes Company/Realtors has experience to share with foreclosures and bank owned properties in Jensen Beach, Florida

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. You must also be able to pay with cash in hand. Finally, you'll accept the property 100% as is. That could consist of standing liens and even current denizens that need to be put out.

A bank-owned property, conversely, is a more tidy and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The lender will deal with the elimination of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.

Note that REOs may be exempt from normal disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to reveal any defects they are knowledgeable of. By hiring The Keyes Company/Realtors, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Are REO properties a bargain in Saint Lucie County?

It's frequently presumed that any foreclosure must be a bargain and a possibility for guaranteed profit. This frequently isn't true. You have to be very careful about buying a repossession if your intent is profit from the sale. While it's true that the bank is typically eager to offload it quickly, they are also motivated to get as much as they can for it.

The Keyes Company/Realtors has experience to share with foreclosures and bank owned properties in Jensen Beach, Florida

Look carefully at the listing and sales prices of comparable homes 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. It is possible to find REOs with money-making potential, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most banks have staff dedicated to REO that you'll work with when buying REO property from them. Usually 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 learn as much as you can about what they know regarding the condition of the property and what their process is for accepting offers. Since banks most commonly 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 terminate the offer if you find it. As with making any offer on real estate, providing documentation proving your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

After you've presented your offer, it's customary for the bank to respond with a counter offer. At this point it will be your decision whether to accept their counter, or make another counter offer. Realize, you'll be working with a process that most likely involves multiple 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.