When we combine the reduced prices for Miami Beach real estate, the amount of foreclosed homes on the market as well as those properties that are owned by the bank, the options in terms of what to buy are substantial. Let’s take a take a look at an REO (real estate owned) and see how such a property can work in your favor.
Should a foreclosed home fail to sell during a Miami Beach real estate auction, it becomes the property of the lender which more often than not is the bank, hence the named “bank owned”. Banks aren’t really in the business of functioning as pseudo landlords so they’re usually more than willing to negotiate heavily on price which results in considerable savings for REO property buyers. It’s important to note however that there is bank money to be earned from an REO so the savings may not be as large as a foreclosure.
Foreclosures come with several risk factors attached to them, namely a possibility of dealing with unpaid taxes or liens that will become the responsibility of the new owner. This risk becomes a near nonissue with an REO sine lenders will often pay such things off before turning the property over to the new owner. On the other hand, an REO comes with the “warts and all” caveat and the lender doesn’t have to agree to fix anything although they will let you back out of a purchase if something is clearly wrong.
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