TOP 10 RESORT MARKET REO BUYING TIPS:

1.  Resort Markets do not have as many REO properties as regular conventional single family home communities.  That is because Resort Markets generally having fewer foreclosures.  Many resort properties were purchased as second home or investment properties, where lenders subjected the buyers to stricter lending standards.  Also, many second homes are purchased with cash funds and a lender is never involved.  Still, with the economic downturn, there are resort and residential REO properties available for purchase – even in Resort Markets.

2. “The Early Bird Gets the Worm!”  When a good REO property comes on the market at a good price, there are people ready, willing and able to act.  Lately, some REO properties have received multiple offers, with buyers bidding up the asking price.  It pays to keep an eye on the market… or have a good REALTOR® doing it for you.    

3.  REO Properties are not always the best deal!  Sometimes REO properties are actually priced higher than the competition.  Again, that’s where your REALTOR® can help by providing you with the latest information on current listings and recent sales.

4. Get “Pre-Qualified” by your mortgage lender prior to submitting an offer for a REO property. 

5.  Expect to write a check for 3% to 5% of the purchase price as an Earnest Money Deposit to accompany your offer.

6.  Expect the Selling Bank to specify which Title and Escrow Company they will require you to use.

7.  Expect to pay for ALL of the closing costs when you purchase a REO home.

8.  Expect the Bank to require you to complete the purchase in 30 days and penalize you with a daily fee of $100 to $200 per day for any day of delay in closing the transaction.

9.  REO properties are generally sold “As-Is”, but Banks are Exempt from providing a buyer with a Seller’s Disclosure Statement.  That means that it is up to you as the Buyer to determine the true condition of the property.   We recommend the services of a qualified Home Inspection Service and other specialized inspection services to assess the true condition of the property.

10. When you purchase a REO property, be sure to use a real estate agent that represents YOUR interests, not the agent who has been hired to represent the Bank!