Bank Owned, Foreclosures, REO's,Short Sales, Pre-Foreclosure.....

Are there any NORMAL SELLER's out there????

Purchasing a foreclosure property can represent significant savings over a traditional home purchase, but the process is more complicated. In order to help you successfully purchase a property, we’ve put together a brief overview which explains the three phases of the foreclosure process and some of the benefits—and challenges—they present.  

How Much Can You Save?  As an informed home buyer, it’s important for you to know what the market value of any home you’re interested in is. In the case of foreclosure properties, it’s also important to know other financial details—such as the default amount, the amount of the outstanding mortgage loan (or loans) and any tax liens on the property. Once you know what the property is worth, and what is owed, you can assess whether or not the home represents a good value, and develop a strategy to negotiate your best price.

 Lis Pendens/Pre-Foreclosure Properties These properties are considered “pre-foreclosure,” and are in the earliest stage of the foreclosure process. The property owner has been given notice that the property may be foreclosed upon if the debt has not been settled or paid in full by a predetermined date. In many cases, the home owner will resolve the debt, and keep his property. In cases where this isn’t possible, a Lis Pendens property often represents the greatest potential savings for a home buyer or investor, but these types of properties also usually take the longest to purchase and require the most work.   Since these properties are still under the control of the home owner, initially all negotiations need to be conducted directly with this individual. The offer is then submitted to their lender(s) for consideration.  In my experience this process can take 60 to 120 days.  The lender can accept your off, counter offer or reject it. 

 Auction Properties  If a default isn’t resolved during the Lis Pendens phase of the process, properties are auctioned at the courthouse in Pinellas County.  Go to www.pinellasclerk.org & scroll to Mortgage Foreclosure Sales for a wealth of information including a calendar where you can search properties coming up for auction.  You may also call for further information (727) 464-3424.  Additional costs and fees may be added to some final judgments listed, and some sales are subject to cancellation by order of the court.  Foreclosure auctions represent the opportunity for great bargains, but also carry the greatest risk for home buyers. Generally, properties won in auctions are purchased “as/is.” There is seldom an opportunity to inspect the property or get a formal appraisal. There is usually no time to do a thorough title search. Also, there may be other outstanding liens on the property that will become the responsibility of the winning bidder. Finally, auctions are often attended by “insiders” whose role is to inflate the winning bid price. If you’re interested in auction properties, make sure you do as much research on the properties you’re planning to bid on as possible before the auction to minimize your risk.

  Bank-Owned Properties  Properties are foreclosed on by the lender—either directly or through the auction process. These properties are referred to as Bank-Owned Homes, or REOs (“Real Estate Owned”).  Lenders are responsible for ensuring that the title is “clean,” and repairing the property to a minimum level. Most of these properties are eventually listed for sale by a real estate agent, although it’s sometimes possible to negotiate directly with the lender before the property is listed for sale.  As is the case with all foreclosure properties, there are some potential complications concerning Bank-Owned homes. For instance, it’s sometimes difficult to identify which lender actually has possession of a property, as these homes are treated as assets and sometimes sold to other lenders. With larger financial institutions, it’s sometimes difficult to locate the person or department that handles REOs. In any case, the best way to successfully purchase a Bank-Owned home is to present the lender with a reasonable offer, preferably in a real estate contract with a deposit and a pre-qualification letter.
 

I can assist you in this transaction process.  I hope the information above gives you a better understanding of the foreclosure process. As a full-service real estate company, we’ll be happy to help you find a home that best suits your needs—whether it’s a foreclosure property, or a traditional home purchase—and to help you arrange the best financing possible.  Charles Rutenberg Realty has been meeting the needs of home buyers and sellers in the Tampa Bay area for a number of years.  Contact me now to get started.