If your questions were in reference to a short sale, then my answer means nothing to you. You mentioned foreclosure several times, and never mentioned short sale.
Be very careful about what you are getting involved in. You say this is a foreclosure however it sounds like a short sale and if that is the case the current owners cannot stay in the property. Please consult a US real estate attorney on this one so you do not get into any kind of legal trouble.
I would also strongly suggest you work with a Realtor to help you find the right property for you whether it is myself or another qualified agent.
Katie Sweet, Realtor
Watson Realty Corp.
Please see my blog for tips and advice on buying a bank owned home
I've closed short sales where the lender pays the back due HOA/condo fees and also the property taxes so that is not a hard and fast rule that a buyer will pay those costs on a short sale.
Also there are some scheisters out there engaging in mortgage fraud to try to make a fast buck. What they do is hide offers and have an insider attempt to convince the lender that the house is worth a lot less than market value. Some will even go to the extent of providing overpriced/falsified repair estimates, too.
It wouldn't be worth buying one of those flips because even if you're purely innocent, you will still have to hire an attorney to prove your innocence if the FBI or other Regulatory body sees the "flip" transaction on public records and decides to go after you along with your realtor, the seller and the listing agent and the "insider investor" that did the flip.
When a property is closed all expenses are brought current including taxes. the seller pays theirs and you will be responsioble fort he future expenses only.
The prices are arrived at based on the current value in the area. but that doesn't mean the bank must accept that. The purchase is a detailed process where your agent gives you a good clue as to how low you can go on your offer. and reasonably get the home.
Short sales can be great deals like foreclosures but you must evaluate them independently...same as foreclosures... not all of those are great deals. As a general rule I would avoid the former owners as the renters as there are often some hard feeling s from them. It is best to let them move on and get a new tennant.
If you need help feel free to call on me. I work a great deal with foreign investors and the distressed sales.
Ken Anderson - Broker
Short Sale Certified
ApexOne Realty, Inc
Until/If a preforeclosure short sale owner/borrower is approved (has a financial hardship) and the price is approved (lender will do their own independent appraisal), the listing price is pure fiction.
If the assessed value is $106k it's probably not likely to appraise for less than $120k. Short Sales are not always a "good deal".
The true bargains are bank owned listings that you can actually buy at (or probably will have to offer more if it's underpriced) the listing price and close within 30 days.
Short sales are supposed to be an "arms length" transaction so if you rent it back to the owner, you may go under an FBI investigation for possibly defrauding the lender.
So, don't waste your time on short sales if you are not planning to spend at least 6 months in Orlando "shopping for homes" and waiting and waiting and waiting...
All the best,
Scott's 2 answers are spot on!
First you'll need to choose a local agent that can sort through all of the mess.
Between you and your agent you can find some pretty incredible properties out there for investment.
And of course every situation is different!
Thanks for asking!
Keller Williams Advantage II Realty
Your situation requires consultation with several professionals. First a financial planner or accountant should be on board regarding not only your acquisition, but also the consequences should you choose to sell this property later. If you do not have a USA issued tax identification number, FIRIPTA is something you absolutely need to know about.
You will need an experienced real estate professional able to represent you in the acquisition of the short sale or foreclosed property. Additionally, you will need the real estate professional to review with you the purchase addendum that will most certainly come from the bank. This addendum will identify who is responsible for paying what and who has liability for what. This is a very important document to understand.
It would work best to work with a real esate professional in Orlando.
Best of success.