Buying bank owned properties
There is a lot of interest in buying bank owned properties these days. A lot of information, some good and some bad, is floating around about the subject.   Often the information offered is for sale, with the promise that you can make a lot of money with little effort once you know “the secret formula”.  The fact is that there are no secrets, and to make money does require effort.

What’s an REO?
REO stands for “Real Estate Owned”.  These are properties that have gone through foreclosure and are now owned by the bank or mortgage company.  This is not the same as a property up for foreclosure auction.  When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process.  You must also be prepared to pay with cash in hand.  And on top of all that, you’ll receive the property 100% “as is”.  That could include existing liens and even current occupants that need to be evicted.  A REO, by contrast, is a much “cleaner” and attractive transaction.  The REO property did not find a buyer during foreclosure auction.  The bank now owns it.  The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.  Do be aware that REO’s may be exempt from normal disclosure requirements.  In Florida, for example, banks do not provide a property Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.

Is it a bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity for easy money.  This simply isn't’t true.  You have to be very careful about buying a REO if your intent is to make money off of it.  While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it.  When considering the value of a REO, 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.  The bargains with money making potential exist, and many people do very well buying foreclosures.  But there are also many REO’s that are not good buys and not likely to turn a profit. 

Ready to make an offer?
Most banks have a REO department that you’ll work with in buying a REO property from them.  Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.  Before making your offer, you’ll want us to find out as much as we can about the condition of the property and what their process is for receiving offers.  We have all of the forms and specialized contracts to submit for each lender.

Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate 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 made 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.  Realize, you’ll be dealing with a process that probably 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.

This is far more efficient and easier than dealing with Short Sales which can take months just to get a response, then more just to try and get an acceptance to an offer. It is not uncommon for a Short Sale to take 6-8 months to close-IF it ever does at all...

 The rule with Short Sale properties is this..."Hurry Up and Wait" the average wait time just to get a response from the sellers lender may be 4 or 5 months, all the time other offers may be coming in and accepted over yours, there is no first come first serve rule in Short Sales.

Remember they are sold As Is, No warranty, no repairs are made and you take it or leave it.

The property can have multiple offers come in while your waiting too.

Even once a seller signs and accepts your offer it still must go to the sellers lender to be processed as a short sale, if allowed, and the bank may re negotiate the sale price, and the banks contracts supersede any that you submitted! Be very cautious and careful when attempting to purchase a Short Sale, use the assistance of an experienced agent.

Call me anytime, 239-272-4663

 To obtain a list of Foreclosure and Short Sale property available in Collier County call me today, I am here to assist ready buyers purchase property.

There are some excellent deals to be found here in SW Florida and you can quickly develop an investment portfolio of homes that you can improve and resell later. I have the knowledge and resources to assist my clients in the purchase, renovation, repair of any investment property purchased here in SW Florida. Naples, Marco Island, Bonita Springs have opportunities available for buyers today, are you ready?

 Here are some samples for this week from the Multiple Listing Service which include Foreclosure waterfront for Naples, Marco Island, Bonita Springs & Ft Myers Beach areas.

Click on the link provided below!

Call me on ANY property that you find on the Internet and I can represent YOU in the sale and provide you with the experience, protection and guidance needed for a smooth transaction.

Attention Real Estate Investors 

We can provide you with the assistance to start a real estate investment portfolio of properties here in SW Florida. Purchase while prices are low and make a nice return on investment while growing your retirement portfolio by investing in Florida real estate.

We can provide you with property list and contractors who have a track record and experience in renovation of investment properties in our area.

Our clients receive the following services:

• MLS daily update of property
• Public Records Search Report
• Tax Information
• Comparable Sales Report
• Property Listing History
• Statistical Reports
• Contractor Referrals
• Property Progress Reports
• Photos of Property Repairs
• Property Pre Purchase Inspection & Report
• All Required Paperwork and Special Addendum
• Bank owned REO Property
• Foreclosures
• Short Sales

 Samples of property!

Naples Condo Foreclosures

Naples Single Family Foreclosures

Marco Island Condo Foreclosure

Marco Island Single Family Foreclosure

Bonita Springs Single Family Foreclosures

Click on provided links for MLS Inventory!

Short Sale Opportunity!

Naples Single Family Home Short Sales

Naples Condominium Short Sales

Bonita Springs Condominium Short Sale

Investors here is a useful Currency Converter so that you can calculate the GREAT savings on purchasing Florida property. Many fine single family homes and condominiums are available to investors looking to take advantage of the many thousands of Short Sales and Foreclosures