Looking for REO property or a foreclosure in Naples?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. If you have questions regarding real estate in Naples, Florida, call me or send me an e-mail.

What is an REO?

"REO" is short for Real Estate Owned. These are houses which have gone through foreclosure that the bank or mortgage company now possesses. This differs from a property up for foreclosure auction. Priority Business Brokers, LLC has experience to share with foreclosures and bank owned properties in Naples, Florida

Priority Business Brokers, LLC has experience to share with foreclosures and bank owned properties in Naples, Florida

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 able to pay with cash in hand. To top everything off, you'll get the property 100% as is. That possibly could include prevailing liens and even current tenants that need to be kicked out.

A bank-owned property, conversely, is a much neater and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will deal with 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.

Take notice that REOs may be exempt from typical disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that usually requires sellers to disclose any defects they are aware of. By hiring Priority Business Brokers, LLC, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Are REO properties a bargain in Collier County?

It is sometimes thought that any REO must be a good buy and a possibility for guaranteed profit. This isn't necessarily the case. You have to be very careful about buying a repossession if your intent is make money. While it's true that the bank is often anxious to offload it promptly, they are also looking to get as much as they can for it.

Priority Business Brokers, LLC has experience to share with foreclosures and bank owned properties in Naples, Florida

Look carefully at the listing and sales prices of comparable properties 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 foreclosures. Still there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most banks have a department dedicated to REO that you'll work with when buying REO property from them. Commonly 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 typically sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unknown damage and retract the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any real estate offer.)

Once you've presented your offer, you can expect the bank to respond with a counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be dealing with a process that probably involves several people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of going back and forth. Priority Business Brokers, LLC is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.