Interested in REO property or a foreclosure in the Orlando area?


	Just as with any home purchase, your wisest 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 address questions you have about real estate foreclosures.

What's an REO?

"REO" or Real Estate Owned are properties which have completed the foreclosure process and are currently owned by the bank or mortgage company. This is different than a property up for foreclosure auction. Investorlando Realty has experience to share with foreclosures and bank owned properties in Longwood, Florida

Investorlando Realty has experience to share with foreclosures and bank owned properties in Longwood, Florida

When buying 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. The buyer must also be ready to pay with cash in hand. To top everything off, you'll receive the property 100% as is. That possibly will consist of existing liens and even current residents that need to be thrown out.

A bank-owned property, conversely, is a more tidy and attractive transaction. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will take care of the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from standard disclosure requirements. For instance, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that typically requires sellers to disclose any defects they are knowledgeable of. By hiring Investorlando Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Is REO property in Longwood a bargain?

It is commonly assumed that any REO must be a good buy and an opportunity for guaranteed profit. This frequently isn't true. You have to be prudent about buying a REO if your intent is profit from the sale. While it's true that the bank is often eager to sell it soon, they are also looking to minimize any losses.

Investorlando Realty has experience to share with foreclosures and bank owned properties in Longwood, Florida

When pondering what to pay for REO property, carefully analyze comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. 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 banks have staff 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 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 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 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 withdraw 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 goes for any real estate offer.)

Once you've submitted your offer, it's customary for the bank to counter offer. Then it will be your decision whether to accept their counter, or submit another counter offer. Realize, you'll be contending with a process that usually involves a group of 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 negotiating back and forth. Investorlando Realty is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.