Buying or selling REO property or a foreclosure in Tallahassee?

Foreclosure, deed-in-lieu, bank owned or REO real estate transactions can be very different from a standard transaction. You will benefit tremendously when you get help of an expert. June Smith, broker of Quest Real Estate Services of Florida, LLC, , has a high level of experience and success with both buyer and seller sides of foreclosure, and bank owned real estate consultation, contract negotiation and transaction administration.



Simply contact us through our site or e-mail us. We're glad to address any questions you have regarding foreclosures.

What's an REO?

"REO" means Real Estate Owned. These properties are listings which have completed the foreclosure process and are now possessed by the bank or mortgage company. This is unlike real estate up for foreclosure auction. Quest Real Estate Services of Florida, LLC has experience to share with foreclosures and bank owned properties in Tallahassee, 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. The buyer must also be willing to pay with cash in hand. Finally, you'll accept the property 100% as is. That possibly will involve prevailing liens and even current residents that need to be removed.

A bank-owned property, on the other hand, is a much cleaner and attractive option. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The lender will handle 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 typical disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to make known any defects of which they are knowledgeable. By hiring Quest Real Estate Services of Florida, LLC, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Is REO property in Tallahassee a bargain?

It's sometimes thought that any REO must be a bargain and an opportunity for guaranteed profit. This isn't always true. You have to be prudent about buying a repossession if your intent is to make money. Even though the bank is typically eager to sell it soon, they are also looking to get as much as they can for it.

Quest Real Estate Services of Florida, LLC has experience to share with foreclosures and bank owned properties in Tallahassee, Florida Look carefully at the listing and sales prices of competing properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well buying foreclosures. However, there are also many REOs that are not good buys and not likely to turn a profit.

Time to make an offer?

Most mortgage companies 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 frequently contract with a listing agent.

Prior to 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 what they know regarding the condition of the property and what their process is for getting offers. Since banks usually sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and withdraw the offer if you find it. As with making any offer on real estate, providing documentation showing your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've submitted your offer, you can expect the bank to counter offer. From there it will be your decision whether to accept their counter, or submit another counter offer. Be aware, you'll be contending with a process that generally involves multiple people at the bank, and they don't work evenings or weekends. It's quite common for there to be days or even weeks of going back and forth.

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