Some of the "foreclosure" listings are just a notice of a Lis Pendens filing for a 2nd home equity line of credit.
The foreclosure process goes through a few steps:
1) Lis Pendens is filed once a buyer is several months late on payments
2) If Seller does nothing then lender will eventually foreclosure at courthouse
a) Typically the mortgage far exceeds the market value so the bank gets the property back at the courthouse foreclosure auction
b) In some cases the foreclosing lender will allow a below market sale at the courthouse auction but you MUST pay ALL CASH and will not get a chance to inspect and also all liens that are not extinguished by the foreclosure will be stuck with the property, ie IRS liens, Code Enforcement, 1st mortgage, Property Taxes, etc.
3) if the lender gets the property back they will typically list the property with a local Realtor and sell for close to full market value. Below market price listings will receive multiple cash offers the first day it is listed.
So if what you're seeing is a "below market" listing price then it could also be a Pre-Foreclosure, Short Sale with an unrealistic listing price. Short Sale listing prices are pure fiction until/if the underlying lender approves the sale price. Sometimes you can get a slight bargain with a Short Sale but you will need to be very patient and also remember the Seller has very little incentive so don't expect the Seller to leave appliances, light fixtures, etc.
Hope this helps.
All the best,
Alma Rose Kee, PA
Teresa Rose Kee
Sold On Tampa Team
Future Home Realty
There are many facets to the decision. With investing in mind, is your investment objective to create an income stream, a tax benefit from rental expenses, or a capital benefit from property appreciation? Another consideration is the management and maintenance of the investment.
If it is a matter of an income stream, consider the potential of commercial property with established leases. This provides for the income stream, and will possibly be easier to service and manage. If residential is chosen, managing the properties has a different flavor but is doable. Both have similar tax benefits though the commercial may be easier to establish as a "business venture" with greater potential write-offs....check with your tax guru on this.
If your goal is obtaining a capital benefit from property appreciation, consider a diverse approach. For residential, each location has some unique dynamics:for example South Tampa is school zone driven for residential, commercial is all about access and which side of Kennedy you are on. Each of the markets, residential and commercial, have their cycles. For capital apprciation, buying low and selling high is the mantra. Some areas for residential have already passed their low and are climbing, commercial would depend on the sector and you would want to consult with a commercial agent. There is a commercial division in our office....
Hope this gives you some additional thoughts and options!... more