Making an offer on REO property or a foreclosure in HATO REY?


	Savvy consumers will turn to a seasoned pro when considering a foreclosed property. Should you have any questions regarding real estate in HATO REY, Puerto Rico, call me or send me an e-mail.

What's an REO?

"REO" or Real Estate Owned are houses which have been foreclosed upon and are now possessed by the bank or mortgage company. This is unlike real estate up for foreclosure auction. S M COLL CAMALEZ has experience to share with foreclosures and bank owned properties in HATO REY, Puerto Rico

S M COLL CAMALEZ has experience to share with foreclosures and bank owned properties in HATO REY, Puerto Rico

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. The buyer must also be prepared to pay with cash in hand. To top everything off, you'll get the property 100% as is. That might involve existing liens and even current denizens that may require expulsion.

A bank-owned property, on the other hand, is a much neater and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The bank will handle the elimination of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from normal disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to disclose any defects they are informed of. By hiring S M COLL CAMALEZ, you can rest assured knowing all parties are fulfilling Puerto Rico state disclosure requirements.

Am I assured a good deal when investing in a bank owned property in HATO REY?

It is occasionally assumed that any REO must be a steal and a chance for guaranteed profit. This simply isn't true. You have to be cautious about buying a REO if your intent is profit from the sale. Even though the bank is usually eager to offload it quickly, they are also motivated to get as much as they can for it.

S M COLL CAMALEZ has experience to share with foreclosures and bank owned properties in HATO REY, Puerto Rico

When pondering the value of REO property, 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. It is possible to find REOs with money-making potential, 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 banks have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will frequently hire a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about their knowledge about the condition of the property and what their process is for receiving offers. Since banks typically sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unknown damage and terminate the offer if you find it. As with making any offer on real estate, providing documentation of your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

After you've submitted your offer, it's customary for the bank to respond with a counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer. Be aware, you'll be working with a process that probably involves a group of people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of negotiating back and forth. S M COLL CAMALEZ is accustomed to these situations and will work to ensure there are no undue delays.