Interested in REO property or a foreclosure in Pensacola?

Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. If you have any questions about real estate in Pensacola, Florida, call us or send us an e-mail.

What is an REO?

Xcellence Realty INC has experience to share with foreclosures and bank owned properties in Pensacola, Florida

"REO" is short for Real Estate Owned. These are properties which have completed the foreclosure process that the bank or mortgage company now possesses. This is unlike real estate up for foreclosure auction.

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 willing to pay with cash in hand. To top everything off, you'll receive the property 100% as is. That may involve current liens and even current residents that may require eviction.

A bank-owned property, on the contrary, is a much cleaner and attractive option. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The bank will take care of the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Note that REOs may be exempt from standard disclosure requirements. For instance, in California, banks are not required to give a Transfer Disclosure Statement, a document that usually requires sellers to disclose any defects they are aware of. By hiring Xcellence Realty INC, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.


Is REO property in Pensacola a bargain?

It's commonly assumed 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 REO if your intent is to make money. While it's true that the bank is often anxious to offload it fast, they are also motivated to get as much as they can for it.

Xcellence Realty INC has experience to share with foreclosures and bank owned properties in Pensacola, Florida When contemplating 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. 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 may not be money makers.

Time to make an offer?

Most lenders have a department dedicated to REO that you'll work with when buying REO property from them. Typically 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 discover as much as you can about what they know about the condition of the property and what their process is for getting offers. Since banks typically 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 hidden damage and cancel the offer if you find it. As with making any offer on real estate, providing documentation of your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.

After you've presented your offer, it's customary for the bank to respond with a counter offer. Then it will be your decision whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be working with a process that generally involves multiple people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks. Xcellence Realty INC is used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.

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