Are you in the market for an Orlando vacation home? If so, you may have come across a listing on a real estate website like Team Donovan’s that says the home is a bank owned / REO property. REO stands for Real Estate Owned, which means the home has been foreclosed upon and repossessed by the lender (which is typically a bank).
Foreclosure processes vary by state, but the end result is the same. After a bank forecloses on a property, they place the home into their inventory of real estate owned. At this point, federal agencies such as Freddie Mac, Fannie Mae or HUD (Housing of Urban Development), may have to settle with the bank if there was some type of guaranteed loan involved. It doesn’t matter whether these agencies or the bank own the property, it is still called an REO.
Bank owned vacation homes are normally sold “as is” which means no repairs will be carried out by the seller. This can be risky for potential buyers because these homes are not always in great shape. That’s because when someone has trouble making mortgage payments and is facing foreclosure, they’re not likely to spend time or money on maintenance and home repairs either. It’s in your best interest to be diligent about getting the home inspected before making an offer.
Sometimes the bank will make minor or major repairs to the home before listing it for sale, in order to attract multiple offers. An REO home may also be aggressively priced, so home buyers should be prepared to show funds in place when submitting an offer for the property. You should also be prepared to compete with other buyers for the property, which can drive up the final sales price.
There is one other thing to be aware of when it comes to buying a bank-owned vacation home in Orlando. It pays to be patient. The sales transaction typically takes anywhere from 30 to 60 days or more to close.
If you’d like to focus your real estate search on REO / bank owned properties, you can select that option when searching the Team Donovan database of vacation homes for sale. You can find a variety of REO homes for sale in some of Orlando’s finest resort communities, including Emerald Island, Reunion and Floridays Orlando. There are a variety of floor plans available, ranging from 2 bedroom, 2 bath condos to 6 bedroom, 5 bath luxury single family villas. Many of these properties are conveniently located next to Disney and the other area theme parks, and are zoned for short-term rental, so you can generate income when you’re not using the home yourself.
For more information about holiday homes for sale in Orlando, contact a Team Donovan agent today at 407-705-2616.
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