Foreclosed homes being sold as real-estate owned (REO) by a lender may be purchased at a reasonable price, although there could be some pitfalls. It’s the same scenario for real estate investors that are thinking about purchasing a foreclosure at the courthouse.
Taking into account these possible problems, you might end up paying an excellent price for the property.
REO buying contracts often favor one side so be sure to meticulously evaluate the terms. You find it helps to evaluate the property as though the seller never resided in the home and may have never seen what it looks like in person. Combine that with the reality that most people don’t invest a lot of time and energy caring for a home that’s going to be foreclosed and that it may have been vacant for a lengthy period, and the need for vigilance becomes that much more important.
If circumstances allow, it is important that you inspect the home condition exhaustively with both a general inspector and consult with professionals regarding what was found. Also, you may wish to have a land survey done and check with the city to ensure there are no issues with code violations.
Speak to the neighbors to see if they’re aware of any property concerns. If the seller has done repair work, be sure to scrutinize them closely and make sure they aren’t simply masking a much more serious issue.
This update is by hard money loans Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on Florida hard money lending, please call 954-816-0388 or fill out our application.