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Looking for REO property or a foreclosure in Hobe Sound?
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Purchasing a bank-owned property is not something to be taken casually.
If you have questions about real estate in Hobe Sound, Florida, call me or send me an e-mail.
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What is an REO?
"REO" or Real Estate Owned are properties which have completed the foreclosure process that the bank or mortgage company presently holds. This is not the same as 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. The buyer must also be willing to pay with cash in hand. Finally, you'll accept the property completely as is. That possibly could include current liens and even current occupants that may require removal.
A bank-owned property, on the other hand, is a much cleaner and attractive proposition. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The lender will take care of the elimination of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.
Take notice that REOs may be exempt from standard disclosure requirements.
In California, for example, banks do not have to give a Transfer Disclosure Statement,
a document that normally requires sellers to disclose any defects they are aware of.
By hiring Ellen Smith or Ruth Billmeyer, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in Hobe Sound a bargain?
It's frequently thought that any REO must be a bargain and a chance for easy money. This isn't always the case. You have to be prudent about buying a REO if your intent is profit from the sale. Even though the bank is usually anxious to sell it fast, they are also looking to get as much as they can for it.
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 or remodeling needed to prepare the house for resale.
There are bargains with potential to make money, and many people do very well buying and selling foreclosures. Still there are also many REOs that are not good buys and may not be money makers.
Ready to make an offer?
Most mortgage companies have staff dedicated to REO that you'll work with in buying REO property from them. Typically 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 discover as much as you can about their knowledge about the condition of the property and what their process is for accepting offers. Since banks usually sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for hidden damage and retract the offer if you find it.
If, as a buyer, you can provide documentation demonstrating your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.)
Once you've made your offer, you can expect the bank to respond with a counter offer. At this point it will be your choice whether to accept their counter, or submit another counter offer.
Be aware, you'll be contending with a process that most likely involves several people at the bank, and they don't work evenings or weekends. It's not unusual for there to be days or even weeks of negotiating back and forth. Ellen Smith or Ruth Billmeyer is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.
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Ellen Smith 772-475-3141 (cell) esmithrealtor@bellsouth.net (email)
Ruth Billmeyer 772-475-8012 (cell) RBillmeyer@bellsouth.net (email)
Illustrated Properties, 5250 Bridge Rd, Hobe Sound, FL 33455
Office Phone: (772) 546-5250 Fax: (772) 546-0696
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