Find a Real Estate Broker and Lender
One of the best things to do when buying a foreclosure is to find a real estate broker who works directly with banks that own foreclosed properties. You might encounter brokers or lenders with “real estate owned” or REO placed on their websites. This signifies that the property had been foreclosed, and the lender now owns it and has decided to list it for sale. This is a great opportunity to get a preapproval letter from a lender, which is what most foreclosures require.
Dealing with Distressed Homeowners
Foreclosed homes don’t exactly have a great history behind them. Usually, their former homeowners are sometimes disgruntled with the bank and feel like they want revenge against them. Distressed homeowners may even strip the home of anything of value or even vandalize the property, leaving it in a decrepit-looking state. However, don’t let these things discourage you as they can all be fixed and replaced. Before you make an offer, find out how much a contractor would charge you to make the necessary repairs.
Know What You’re Up Against
When buying a home from a traditional listing, the seller usually warns you of certain imperfections or issues that the property may have. Small things like a loose door handle, or windows that creak are some examples. That’s not the case with foreclosed homes. There are no homeowners around to give you any advice or history about the home. The lender can’t really help out as well since they’re not that familiar with the house. Also, with the condition of most foreclosed homes, you’re gonna be up against a lot of repairs and issues that need to be fixed. You better do a thorough inspection of the house, or you could end up biting off more than you can chew.
Be Patient
Buying bank foreclosed homes in Orlando usually takes a lot more time than buying a house the traditional way. Most of the time, these REO brokers and lenders deal with thousands of foreclosed homes simultaneously, which means it could take a while before they can accommodate you and look at your offer. In addition, buying in the foreclosure market takes a lot of patience, from waiting for your offer to be processed to the house repairs you need to do once you’ve purchased the property.
Conclusion
Buying a foreclosed property lets you save a lot of money when you score a great deal, but that could take some time and a bit of research to do. They also require a little more effort with all the repairs and replacements involved to restore the property. In the end, you can still end up with a house that you’ll be proud to call your home.
Orlando REO Professionals I, Inc. prides itself in providing quality investment properties and foreclosed homes to clients in the Central Florida area. Our team of listing specialists has all the experience you need to get the best deals possible. Trust us to help you find the best possible bank-owned properties in Florida. Contact us today to get started!