Title issues are fairly normal and do not buy themselves raise any red flags. The bank wants the closing to go quickly and smoothly, so if they find a cloud on the title, they'll get it fixed as priority.

I've been involved in bank owneds for a while now. Have shown 100's, closed a bunch, read 1000's of MLS details and I really can't recall seeing a demand for cash only offers. Actually what the bank would love is for you to finance with them. That's why so many required your pre-approval to be with them. So I don't know about a major red flag, but it is very unusual.

Good Luck,
Mark LeMenager
Weichert, Realtors - Hallmark Properties

Hi W319
Great questions. Regarding title issues-this happens frequently, and for various reasons, when it comes to any home, distressed or not. And, honestly, a lot of what stifles the flow of faster selling is the fact that there's just not enough people to process all these homes. The banks have gotten so much inventory in the past few years at the same time as when they were laying off employees so many times there's too many files, not enough help.

The great thing is, though, that most REO agents (these are listing agents that sell bank owned properties) are able to tackle these issues with the help of the title company prior to listing. Every now and then, they can't, thus a withdraw from the market. It's still going to sell, they just need to get their ducks in a row before they put it back out there. Truly, the title issue could be a small lien or something-you never know. Just consult with your agent to find out what the timeline could be for the issue to be resolved, and perhaps you have an offer ready and waiting to present the moment it comes back on the market! If you don't have an agent, call or email me. A member of our team will be happy to assist you (and as a buyer, Realtors are generally a free service).

Red flags when it's all cash? Well, cash is king...sometimes. A bank wants to see your highest and best offer, and cash is awesome, unless it's an offer at 70% of the sales price competing with a buyer over and above. Again, it's situational and that's what my job as your real estate professional is-to make sure you're competitive but also getting the best darn deal out there. When it comes to a multiple offer situation, if the numbers make sense and depending on your motivation, and the particulars of that house and the long term potential of the investment, we can make an educated decision together as to where to be on your offer. Remember, right now, you pretty much cannot go wrong with buying a home. And, no one is going to finance you over appraised value, and you can use that as leverage even as a cash buyer-it helps to know what the FAIR market value of your home is, financing or not.

If a home is listed as cash only, it could be because the bank doesn't want to wait around for financing. It could be because the home has some issues that may not be approved for certain types of loans. And, believe it or not, some banks just have their guidelines set in place when it comes to how their numbers read and if the home fits that bill, then they know they won't even look at homes that aren't cash-again, It's a situational thing, and the best thing you can do as a buyer is to have an agent you trust.

Hope that helps. And remember, the Smart Realty Group is always Working Smarter AND Harder For You.

Your Favorite Realtor,
Amanda

Banks want to turn their inventory of foreclosed homes as fast as they can. So they put the properties on the market at fire sale prices, attract many offers at or above asking price and then accept the highest and best - which probably means a cash offer.

You are right about the title issues. The bank will only issue a speciality warranty deed which is much the same as a quit claim deed. If you are financing then your lender will make sure that there are REALLY no title issues, but if you are paying cash it is best to have your own private title search done. It usually cost about $100 to $150.

All though you CAN get a great deal with a bank owned these days, you have to have a strong stomach because everything is in favor of the bank and you are pretty much blind bidding on these houses. Buying foreclosures is not for everyone but luckly there are some good deals on some private/regular sales where the seller owes little or nothing on a mortgage and needs to sell but are competing agaist the foreclosures on price.

All sorts of things could cause title issues. Maybe there is a cloud because improper sale (all owners did not sigh) or maybe the house is on someone else's land.

Wunderkind todays Real Estate is full of land mines, so much can go wrong.

Having a Realtor help you costs the buying nothing, and a Good Realtor knows where the problems are, and ain't, how the HOA's are doing -all sorts of stuff.

I work the Apopka area (I live in Mount Plymouth just a mile or two north), the Mount Dora Area (where my office is) Seminole County (where my girl friend is)

Please go to my site and look around.

I am working today so call at:
353- 978-4539

John