Interested in REO property or a foreclosure in Land O Lakes?


	Investing in a bank-owned property is not something to be taken casually.

What's an REO?

"REO" means Real Estate Owned. These are homes which have completed the foreclosure process and are currently held by the bank or mortgage company. This is unlike real estate up for foreclosure auction. JLS Investment Realty has experience to share with foreclosures and bank owned properties in Land O Lakes, Florida

JLS Investment Realty has experience to share with foreclosures and bank owned properties in Land O Lakes, Florida

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. The buyer must also be prepared to pay with cash in hand. Finally, you'll get the property 100% as is. That possibly could involve existing liens and even current tenants that may require eviction.

A bank-owned property, by contrast, is a much cleaner and attractive proposition. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The lender will see to 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 normal disclosure requirements. For example, in California, banks are not required to give a Transfer Disclosure Statement, a document that usually requires sellers to make known any defects they are informed of. By hiring JLS Investment Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Is REO property in Land O Lakes a bargain?

It's sometimes assumed that any foreclosure must be a steal and an opportunity for easy money. This simply isn't true. You have to be very careful about buying a REO if your intent is make money. While it's true that the bank is usually eager to offload it soon, they are also motivated to get as much as they can for it.

JLS Investment Realty has experience to share with foreclosures and bank owned properties in Land O Lakes, Florida

When contemplating what to pay for a foreclosure, 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 buying foreclosures. However there are also many REOs that are not good buys and may lose money.

Prepared to make an offer?

Most banks 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 often use 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 their knowledge about the condition of the property and what their process is for receiving offers. Since banks most commonly 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 terminate 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 goes for any real estate offer.)

After you've presented your offer, it's customary for the bank to make a counter offer. At this point it will be your decision whether to accept their counter, or offer a counter to the counter offer. Realize, you'll be dealing with a process that most likely involves multiple people at the bank, and they don't work evenings or weekends. It's not unusual for the process of offers and counter offers to take days or even weeks.