Answers to your Questions about Bank Owned Properties

Q. What is a bank owned property or REO?
A. It is not a Short Sale. The bank has already foreclosed on the property. The bank is the seller/owner.

Q. Is the property available?
A. If it is active on the MLS it is available.

Q. How do I make an offer?
A. “Far/Bar As Is” is preferred. Please include proof of funds or preapproval. If a specific bank’s preapproval is required, please contact the bank immediately.

Q. Will banks pay for buyers closing costs?
A. Many will, however, in many cases there are competing offers. Keep that in mind when presenting your offer.

Q. Are there seller disclosures?
A. No. Once the bank accepts the offer they will prepare bank addendums. Typically you have 24-48 hours to review addendums and accept the terms of the addendums. As with all addendums, they will supersede the state contract.

Q. What does highest and best mean?
A. When there are multiple offers presented to the bank the bank will ask you to reconsider your offer and present your highest and best offer. The bank solely decides whose offer they would like to accept.

Q. How long does it take for the bank to respond to our offer?
A. Usually between 24-72 hours, however that does not include weekends.

Q. How long does it take to get my contract and addendums signed?
A. This varies dramatically from bank to bank… from 2 days to 2 weeks.

Q. How long does it take to close on a bank owned property?
A. Between 30-45 days if financing and 20-30 days if purchasing cash.

Q. Can the buyer select the title company?
A. No, the banks have relationships with their title companies.

Q. Will the bank provide HOA/Condo Docs to the buyer?
A. No, the buyer is responsible for obtaining all docs and should be noted on the contract.

Q. Will the bank provide clear title?
A. Buyer will receive clear title and bank will pay off any current liens or assessments.

Q. Will I get keys and garage remotes?
A. You will get keys to the property; however, it is strongly recommended that you change the locks. Banks use master keys and many individuals have access to bank owned properties.

For more great information tune into your Tampa Real Estate Exaiminer!