REO (Real Estate Owned) or Bank Owned
Buying a Foreclosure can be rewarding, but it also has its challenges.
These include that the bank that now owns the property may not have personnel assigned to negotiate prices or approve an offer. Therefore, an offer may not be responded to in a timely manner. It is common to request a quick response (a few days) for an normal offer to the owner of a home, but once it goes REO, a response time of a few weeks is more common, and even longer times often are needed: 30 days is recommended. Once the bank has assigned a coordinator, negative responses may be quick, but positive responses generally require a committee to approve, and they may only meet once per week.
Foreclosed homes are nearly always sold "AS IS". The bank will generally not accept any contingencies such as repairs, unless such repairs are required by law prior to a sale.
The ONLY contingencies banks routinely accept are for financing and inspections.
They frequently refuse to pay closing costs such as surveys.
Another frequent complication is that title insurance may not be readily available, or more properly, the title itself may not be clear. This leads to delays in closing, delays which may not happen until the expected time of the closing. Expect that the bank will be slow to complete their end of the process, so that a closing might take 60 days rather than the usual 30 days in Florida.
There are other considerations which arise from time to time. To discuss buying a Foreclosed or REO or Bank Owned Home, please contact Steve (Your Golf Home Pro) at:
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