Looking for REO property or a foreclosure in Lake Wales?


	Purchasing a bank-owned property is not something to be taken casually. If you have any questions about real estate in Lake Wales, Florida, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are homes which have completed the foreclosure process that the bank or mortgage company now owns. This is unlike a property up for foreclosure auction. Legacy Real Estate Center, Inc. has experience to share with foreclosures and bank owned properties in Lake Wales, Florida

Legacy Real Estate Center, Inc. has experience to share with foreclosures and bank owned properties in Lake Wales, 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 able to pay with cash in hand. And on top of all that, you'll receive the property 100% as is. That possibly could include current liens and even current occupants that may require eviction.

A bank-owned property, on the contrary, is a much cleaner and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will deal with 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 normal disclosure requirements. For instance, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to tell you about any defects of which they are aware. By hiring Legacy Real Estate Center, Inc., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I guaranteed a low price when buying a bank owned property in Lake Wales?

It's frequently thought that any REO must be a steal and a possibility for easy money. This isn't always true. You have to be prudent about buying a REO if your intent is make a profit. While it's true that the bank is often anxious to sell it fast, they are also looking to minimize any losses.

Legacy Real Estate Center, Inc. has experience to share with foreclosures and bank owned properties in Lake Wales, Florida

Look carefully at the listing and sales prices of similar homes 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 and selling foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most lenders have a department 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.

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 regarding the condition of the property and what their process is for accepting offers. Since banks most commonly sell REO properties "as is", it's often prudent 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, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've submitted your offer, you can expect the bank to counter offer. Then it will be your decision whether to accept their counter, or make another counter offer. Your transaction could be final in a single day, but that's rare. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.