Looking for REO property or a foreclosure in Destin?


	Savvy consumers will turn to a seasoned pro when considering a foreclosed property. If you have any questions about real estate in Destin, Florida, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are properties which have gone through foreclosure and are now held by the bank or mortgage company. This is different than a property up for foreclosure auction. The Realty Firm Inc has experience to share with foreclosures and bank owned properties in Destin, Florida

The Realty Firm Inc has experience to share with foreclosures and bank owned properties in Destin, 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. You must also be ready to pay with cash in hand. And on top of all that, you'll accept the property totally as is. That may comprise of existing liens and even current denizens that need to be thrown out.

A bank-owned property, conversely, is a much cleaner and attractive option. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The lender will take care of 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 Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to reveal any defects of which they are informed. By hiring The Realty Firm Inc, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Are REO properties a bargain in Destin?

It's occasionally believed that any foreclosure must be a good deal and a possibility for easy money. This isn't always true. You have to be prudent about buying a repossession if your intent is to make money off of it. Even though the bank is typically anxious to sell it fast, they are also motivated to get as much as they can for it.

The Realty Firm Inc has experience to share with foreclosures and bank owned properties in Destin, Florida

When pondering 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. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and may not be money makers.

All set to make an offer?

Most banks have staff dedicated to REO that you'll work with while 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 find out 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 cancel the offer if you find it. If, as a buyer, you can provide documentation showing 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 type of 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 up to you to decide whether to accept their counter, or submit another counter offer. Your deal might be final in a single day, but that's rare. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.