One of the biggest questions I receive on a daily basis working with Fort Lauderdale REOs and foreclosures is this: What is the difference between the two? I will answer that question for you here.

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 not true foreclosures any longer after the bank takes over. These properties are simply bank owned following foreclosure, and the buyer then purchases that property from the bank.

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 this way. Like anything, the reward can be greater too.

Another myth about South Florida REO’s and Bank owned properties is the belief that the process takes a long time and is complicated, but this is not normally true. Most of the time, a bank or asset manger will respond to offers within twenty four to seventy two hours. The property will be well worth your wait if you are able to purchase the property below market value anyway.

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

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 is currently low).

One last minor concern is the presence of \”Take All Root Rot,\” which has been found in the greater Boca Raton and Fort Lauderdale area. This type of fungus causes the grass, particularly St. Augustine grass, to become brown and eventually die. This leaves discolored patches and grassless areas in the yard. it\’s difficult and expensive to treat the symptoms, so you may want to make sure that brown, grassy patches are not Take All Root Rot.

Don’t bother offering fifty cents on the dollar-it won\’t happen. There is just too much competition for short sale homes in this area to try and \”bargain\” with the unapproved or approved short sale price. I often have clients who do this despite my advice, and the percentage of clients who get the property is still 0%.

This is just a short check 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 or visit FortLauderdaleForeclosures.org.

Mike Benton is a real estate professional specializing in short sale and foreclosure properties in the greater Fort Lauderdale area.