Looking for REO property or a foreclosure in Venice?


	Investing in a bank-owned property is not something to be taken casually. Should you have questions about real estate in Venice, Florida, call me or send me an e-mail.

What's an REO?

"REO" or Real Estate Owned are homes which have gone through foreclosure and are currently possessed by the bank or mortgage company. This differs from real estate up for foreclosure auction. Venice Hometown Realty, LLC has experience to share with foreclosures and bank owned properties in Venice, Florida

Venice Hometown Realty, LLC has experience to share with foreclosures and bank owned properties in Venice, 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. You must also be prepared to pay with cash in hand. And on top of all that, you'll accept the property totally as is. That possibly may involve existing liens and even current occupants that need to be removed.

A bank-owned property, on the other hand, is a much cleaner and attractive option. The REO property did not find a buyer during foreclosure auction. Now the bank owns it. The bank will see to the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from typical disclosure requirements. For example, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that typically requires sellers to disclose any defects of which they are informed. By hiring Venice Hometown Realty, LLC, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I guaranteed a good deal when investing in an REO property in Venice?

It is commonly thought that any foreclosure must be a good buy and an opportunity for easy money. This frequently isn't true. You have to be cautious about buying a repossession if your intent is make money. Even though the bank is often eager to offload it soon, they are also motivated to minimize any losses.

Venice Hometown Realty, LLC has experience to share with foreclosures and bank owned properties in Venice, Florida

When pondering what to pay for REO property, 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. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. But there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with when buying REO property from them. Normally the REO department will use a listing agent to get their REO properties listed on the local MLS.

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 regarding the condition of the property and what their process is for getting offers. Since banks almost always 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 retract the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

Once you've presented your offer, you can expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Understand, you'll be contending with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's not uncommon for there to be days or even weeks of going back and forth.