|
What's an REO Property?
When you see "REO" or Real Estate Owned are Sarasota properties which have completed the foreclosure process and are now owned by the bank or mortgage company. This is different than a property up for foreclosure auction. 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 prepared to pay with cash in hand. Finally, you'll accept the property completely as is. That may consist of prevailing liens and even current denizens that may require eviction. A bank-owned property, on the contrary, is a much neater and attractive transaction. The REO property didn't find a buyer during the Sarasota foreclosure auction. Now the lender owns it. The bank will see to 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. You should be aware that REOs may be exempt from normal disclosure requirements. For example, in Florida, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to reveal any defects they are knowledgeable of. By hiring PETE MARRIOTT AND BILL GARRISON, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in SARASOTA a bargain? It's commonly believed that any Sarasota foreclosure must be a good buy and a chance for guaranteed profit. This often isn't true. You have to be very careful about buying a repossession if your intent is to make money off of it. Even though the bank is typically eager to offload it soon, they are also motivated to minimize any losses. When considering what to pay for REO property, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs needed to prepare the house for resale.
The bargains with money making potential exist, and many people do very well flipping foreclosures. However 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 when buying REO property from them. To get their properties advertised on the local MLS, the lender will usually use a listing agent. Before making your offer, you'll want to contact Pete Marriott and Bill Garrison find out as much as you can about the the condition of the property and what their process is for receiving offers.
A bargain foreclosure home maybe like buying a bargain used car. While most Sarasorta real estate can be bought at a huge discount under 2003 pricing, some of these foreclosure bank owned homes and condos can be a even better nut beware! Many Sarasota, Florida foreclosure properties have had very little or no maintainence and need extra work and money after closing to bring them up to normal condition (ie) leaking roofs, pest problems, plumbing, A/C repairs. They can be a maintenance nightmare unless properly inspected and even then you should be cautious. The bank Asset Managers, the bankers selling the real estate, are tuff guys and play with their own rules that change often. They try to turn these foreclosure real estate sales into auctions taking several offers at a time then asking for "final and best offers". I don't know why but once or twice a week we see a real cherry that's under valued $50,000 or more. These are the homes that sell in a week or less. Many people think foreclosure homes are always sold far below market value. "WRONG". Bank owned foreclosure homes and condos are usually for sale close to the true market value. I know of real estate that has had 3 separate appraisals before the selling price was settled. Some of these foreclosure homes are very good buys but you have to be ready and be quick. Be cautious and work with a Professional Realtor ®. |
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
