Looking for REO property or a foreclosure in Stuart?


	Savvy consumers will turn to a seasoned pro when considering a foreclosed property. If you have any questions about real estate in Stuart, 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 and are currently owned by the bank or mortgage company. This is not the same as a property up for foreclosure auction. Drew Pittman Realty has experience to share with foreclosures and bank owned properties in Stuart, Florida

Drew Pittman Realty has experience to share with foreclosures and bank owned properties in Stuart, Florida

If you buy 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. The buyer must also be ready to pay with cash in hand. And on top of all that, you'll get the property 100% as is. That possibly could include standing liens and even current residents that may require expulsion.

A bank-owned property, by contrast, is a much cleaner and attractive option. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will take care of the removal 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. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of. By hiring Drew Pittman Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I assured a bargain when buying a bank owned property in Stuart?

It's sometimes believed that any foreclosure must be a good buy and a possibility for easy money. This simply isn't true. You have to be prudent about buying a REO if your intent is make a profit. Even though the bank is often anxious to offload it fast, they are also looking to get as much as they can for it.

Drew Pittman Realty has experience to share with foreclosures and bank owned properties in Stuart, Florida

When considering what to pay for a foreclosure, 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. However there are also many REOs that are not good buys and not likely to turn a profit.

Ready to make an offer?

Most mortgage companies have staff dedicated to REO that you'll work with while buying REO property from them. Commonly 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 to contact either the listing agent or REO department at the bank and find out as much as you can about what they know about the condition of the property and what their process is for taking offers. Since banks most commonly 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 unseen damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true 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 your decision whether to accept their counter, or offer a counter to the counter offer. Your transaction might be final 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. Drew Pittman Realty is accustomed to these situations and will work to ensure there are no undue delays.