Buying REO property or a foreclosure in Panama City?


	Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. For more information, just contact me through my site or e-mail me. I'm happy to answer any questions you have regarding real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are houses which have completed the foreclosure process and are currently possessed by the bank or mortgage company. This is unlike real estate up for foreclosure auction. Thom Bachelder PA Inc. has experience to share with foreclosures and bank owned properties in Panama City, Florida

Thom Bachelder PA Inc. has experience to share with foreclosures and bank owned properties in Panama City, Florida

A bank-owned property, conversely, is a much cleaner and attractive option. The REO property didn't find a buyer during foreclosure auction or the Short Sale process. Now the lender owns it. The lender will handle 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.

Do be aware that REOs may be exempt from normal disclosure requirements. In California, for example, banks do not have to give a Transfer Disclosure Statement, a document that typically requires sellers to make known any defects of which they are knowledgeable. By hiring Thom Bachelder PA Inc., you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Is REO property in Panama City or Beach a bargain?

It is occasionally thought that any foreclosure must be a bargain and a chance for easy money. This isn't necessarily the case. You have to be cautious about buying a REO if your intent is to make money off of it. While it's true that the bank is usually eager to offload it quickly, they are also motivated to get as much as they can for it.

Thom Bachelder PA Inc. has experience to share with foreclosures and bank owned properties in Panama City, Florida

When contemplating the value of a foreclosure, 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.

Prepared to make an offer?

Most lenders 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 hire a listing agent.

Before making your offer, you'll want to contact me Thom Bachelder at 850-866-5577, so he can help you learn as much as you can about what you need to know about the condition of the property. Since banks typically 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 terminate the offer if you find it. As with making any offer on real estate, providing documentation of your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender. If you are going to obtain financing on this property, condition can be problematic for FHA and USDA Rural Development loans. The appraiser has the ability to REQUIRE REPAIRS BE MADE PRIOR TO CLOSE. These are called, "Lender Required Repairs" and will be documented on the appraisal that is submitted to your lender. Your lender will require these repairs to be made and inspected for completion before they will approve your final loan documents and give a "Clear to Close." Since the seller is a bank and offering the property "As-Is" they typically won't make repairs in the last hour. Your only option is to come "Out of Pocket" for repairs or walk away from the deal. That where my expertise in the foreclosure market comes into play. I have special verbiage I place in the contract to proctect you from such a senario. Thats why you do not want to use a inexperience Realtor in these kind of deals.

After you've presented your offer, it's customary for the bank to make a counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your transaction could be settled in one 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. Thom Bachelder is accustomed to these situations and will work to ensure there are no undue delays. I have closed many Foreclosure properties and can help you identify the properties that I know from much experience will never pass the closing process, thus saving you the stress and money of a deal that has gone bad. Foreclosure are not alway a "Good Deal".

Posted by Thom Bachelder, Broker/Owner on May 24th, 2011 9:02 AMPost a Comment (0)

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