One of the biggest questions I receive on a daily basis working with Fort Lauderdale REOs and foreclosures is this one:  What is the difference between these two?

Both properties have been through the judical foreclosure process but one is owned now by the bank and one is purchased directly from the courthouse.  REO’s and Bank Owned properties are truly not foreclosures any longer after the bank takes over. In most cases there are no longer liens on the property, “PLEASE MAKE SURE YOU GET TITLE WORK OR SEEK LEGAL ADVICE ON ALL REAL ESTATE TRANSACTIONS, WE ARE NOT ATTORNEYS AND DON’T GIVE LEGAL OR ACCOUNTING ADVICE” The true act of buying foreclosures is to go bid at your local courthouse but there are many more risks involved but like anything the reward can be greater also. Another myth about South Florida REO’s and Bank owned properties is the process takes a long time, not normally true. Most of the time a bank or asset manger will respond to offers within twenty four to seventy two hours.

Here is a list of things to consider when buying a Pompano Beach Foreclosure or Bank Owned property.

• Make sure you or your realtor has experience dealing with foreclosures or bank owned properties.  There are many Fort Lauderdale Homes for Sale that are bank owned, but some are better deals than others due to local market conditions.
• Get the property inspected by a licensed inspector, roofer, HVAC
• Make sure to know when the home was built to check for drywall issues
• If the property has been vacant you might want to have a mold test
• Make sure you look over the most recent sales in the area over the past three to six months and check the active inventory (inventory for homes less than three hundred thousand in South Florida currently is low) Don’t bother offering fifty cents on the dollar since it won’t happen.

This is just a short list. If you would like more information about buying directly form the Broward County Auction or Palm Beach County foreclosure auction please give us a call at 561-451-5700.