Buying
Buying Foreclosed Homes in Orlando and Clermont
A bank-owned home, also called REO, is one the lender took back through foreclosure and now sells itself, on terms the bank sets. Kris Persaud's Zillow reviews include a buyer who bought a bank foreclosure in Mount Dora. Current listings will appear here only as MLS and IDX rules allow.
Kris Persaud · Watson Realty Corp. · 1390 N Hancock Rd, Clermont, FL 34711
The basics
What Bank-Owned Means
When an owner cannot pay the mortgage, the lender can foreclose. In Florida, the home then goes to a public foreclosure sale run through the county clerk. If no outside bidder buys it there, the lender takes ownership. From that point it is “real estate owned”, or REO, and the bank usually lists it with a local agent on the MLS like any other home.
Bank-owned (REO) listing
Listed on the MLS. You can usually tour it, make an offer with financing, and inspect it during the contract. The bank is the seller.
Foreclosure auction
Run by the county clerk, often online. Bidders usually pay quickly in certified funds, rarely see inside first, and take on more title risk.
Short sale
The owner still owns the home and is selling it for less than the loan, with the lender's approval. See how short sales work.
What to expect
How Buying from a Bank Is Different
A bank-owned purchase uses the same steps as any other purchase. The seller is what changes. A bank has never lived in the home, works through asset managers, and writes its own rules into the deal.
- Sold as-is: banks rarely make repairs or give repair credits. Price the work into your offer.
- Bank addenda: the bank adds its own pages to the contract, and they usually override the standard form. Read them before you sign.
- Slower answers: offers and counteroffers often pass through several people at the bank, so replies can take days. Your contract dates should allow for that.
- Proof up front: banks often want a pre-approval letter or proof of funds with the offer, and some ask for a pre-qualification from a lender they choose.
- Utilities and condition: a home that sat empty may have the power or water off, and mold, plumbing or roof problems can show up. Ask how to get utilities on for inspections.
- HOA and paperwork: check for unpaid HOA dues or open permits, and let your title company search the title before closing.
Financing
Paying for a Bank-Owned Home
You can pay cash or use a mortgage. A lender will only lend on a home that meets its condition rules, so a house with a missing kitchen, a bad roof or no working systems may not qualify for a standard loan. Some buyers use a renovation loan in that case.
Talk to a lender before you start touring. They can tell you which loans fit the homes you are looking at and how much to keep aside for repairs. Kris does not give lending advice.
Bank-owned homes are not always bargains. Some are priced close to market value, and the repairs can take away any discount. A careful look at recent nearby sales and repair costs is what tells you whether a price makes sense.
From his Zillow reviews
Bank-Owned Purchases in Kris's Reviews
Bank foreclosures are one of the themes in Kris's 136 Zillow reviews. A 2012 review comes from a buyer who bought a bank foreclosure in Mount Dora after 14 months. Patience is part of these purchases: the right home may take time to come up, and the bank may take time to answer.
Other buyer reviews show the care that matters with older or empty homes. In 2016, a Canadian buyer in Clermont says Kris arranged the inspection, negotiated a seller credit for polybutylene plumbing, and found home insurance.
Made us feel like we were his only client.tispiz · Sold in Clermont · Zillow · 2024
Listings
Current Bank-Owned Listings
Until then, call or text Kris with the towns and price range you have in mind. You can also read about buying a home with Kris or the Clermont homes for sale page.
Questions
Bank-owned home questions
Are foreclosed homes always cheaper?
No. Some are priced close to market value, and repairs can cancel out a discount. Each home and each bank is different, so compare recent nearby sales and repair costs first.
Can I get an inspection on a bank-owned home?
Generally yes, but the bank sells as-is and its addendum sets the rules. Confirm the inspection period in your contract.
Will the bank fix anything?
Usually not. Banks rarely make repairs or give credits, so build the cost of any work into your offer.
How do I pay for a bank-owned home?
With cash or a mortgage. Homes in poor condition may not qualify for every loan, so talk to a lender first.
Keep reading
Related pages
Ask Kris about bank-owned homes
Call or text Kris with the area and price range you have in mind, and ask how a bank-owned purchase would work for you.
Kris Persaud · Watson Realty Corp. · 1390 N Hancock Rd, Clermont, FL 34711