REO stands for real estate owned by banks acquired through foreclosure or debt forgiveness. Some banks refer to it as OREO standing for other real estate owned (as in not in the operation of the banking enterprise such as bank building, service center, satellite operation, etc.).
I just completed a manual search of our mls records for bank owned single family homes in Key West. I think that the list may not be complete because some lenders may not necessarily be taking title to new REO in the bank's name. The list does not contain condos or town homes or any other real property. The properties are listed below by street address. Prospective buyers should consider buying one of these properties because they are likely priced at the real current market value and not at some inflated wishful thinking price. When banks foreclose they are required to substantiate the value they put on a foreclosed asset, and that is usually accomplished by having a recent appraisal.
The question arises if the bank owner has the property listed at appraised value, will the bank negotiate on price. The answer is yes. And no. Banks generally will not counter a written offer with a statement of what the bank will accept. Rather, they will tell the buyer to come back with his best and final offer. If there are more than two offers on the same property, the bank will play the offers against each other trying to up the purchase price. The bank may stonewall waiting for better offers rather than accepting a low-ball offer.
Banks must sell the REO. They asset managers look at real deals that can be closed. I advise clients to offer clean deals with very few contingencies (inspection, survey, and title). I urge buyers to offer all cash and make a quick close. The cleaner the offer, the more likely it may get accepted.
Here's the list. Take a look. If you see something you like please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. CLICK the street address below for detailed info and photos.
304 Julia Street with pool.
1116 Eaton Old Town with pool.
408 Grinnell Street - a beautiful new home in Old Town.
Windsor Lane rehab
1310 Olivia Street in the Meadows with pool.
1730 Johnson Street mid town with "pool".
2005 Fogarty mid town.
1609 Josephine Street mid town partially re-done.
1713 Johnson Street -- midtown
910 United Street -- Needs redone, huge lot.
309 Julia -- not a typo, across street from the huge house up above.
518 William Street -- Heart of Old Town and a Great Block!
1419 Atlantic Blvd - a condo that really needs some luvin!
34 Kingfisher Lane -- Key West Golf Club --Bank financing available.
1 Coral Way Stock Island - new town home with pool
3711 Duck Avenue
The properties below are not listed in our mls but they are bank owned and available for purchase. Contact Gary Thomas for more info:
Flagler Aveune 3/3, $514,900
Elizabeth Street 5/2 apartments $$548,900
Duck Avenue 4/2 townhome $287,900
Eagle Avenue 2/1.5 $177,900
Bay Drive Saddlebunch Key on water 2/2 $698,900
