Making an offer on REO property or a foreclosure in Miami?


	Just as with any property purchase, your wisest move is to hire a professional real estate agent. If you have any questions about real estate in Miami, Florida, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are properties which have completed the foreclosure process that the bank or mortgage company presently owns. This differs from a property up for foreclosure auction. All-Estate Realty has experience to share with foreclosures and bank owned properties in Miami, Florida

All-Estate Realty has experience to share with foreclosures and bank owned properties in Miami, Florida

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be willing to pay with cash in hand. Finally, you'll get the property entirely as is. That could include existing liens and even current denizens that may require removal.

A bank-owned property, on the contrary, is a more tidy and attractive deal. 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 plan 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 example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to tell you about any defects of which they are knowledgeable. By hiring All-Estate Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I assured a good deal when purchasing an REO property in Miami?

It is frequently believed that any REO must be a bargain and a possibility for guaranteed profit. This often isn't true. You have to be prudent about buying a REO if your intent is profit from the sale. Even though the bank is usually eager to offload it soon, they are also looking to get as much as they can for it.

All-Estate Realty has experience to share with foreclosures and bank owned properties in Miami, 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 upgrades 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 buying foreclosures. But there are also many REOs that are not good buys and may lose money.

Prepared to make an offer?

Most lenders have staff 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 typically contract with 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 concerning the condition of the property and what their process is for accepting offers. Since banks typically 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. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've made your offer, you can expect the bank to make a counter offer. At this point 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 working with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks.