Home Buying in Cedar Bend>Question Details

Ezv619, Home Buyer in Fort Myers, FL

What all is involved in purchasing a foreclosed property?

Asked by Ezv619, Fort Myers, FL Sun Jul 24, 2011

Help the community by answering this question:



Purchasing a "foreclosure" is very similar to making a regular purchase, only the seller is the lender. If successful the amount of time requird to close is approximtely the same as a normal sale.

It's recommended that buyers entering this market do so with the guidance of an agent experienced in these sales, have a letter of pre-approval, or a letter for proof of funds in the event they would be paring cash for the property.

Additionally, having an appreciation for the local market activity is a real advantage because it should allow you the insight to be able to make a quick decision...something that can distinguish the difference between success and failure in a competitive market.

In summary: get and agent to support you, obtain either a letter of pre-approval or a proof of funds letter, and invest some time in becoming informed about your market of interest.

Good luck,

1 vote Thank Flag Link Sun Jul 24, 2011
Its no secret that Florida is one of the most widely coveted states in regards to lifestyle.

This is the fifth tip in our series: “12 Tips for Buying Real Estate in Southwest Florida” which is also available as a free eBook at http://www.AckermanSWFL.com/ebooks/.

Beaches galore and beautiful weather throughout the majority of the year are only a few reasons why tourists from all over the globe flock to Southwest Florida for vacations. The quality of life on Florida’s Gulf Coast is second to none. You may have thought that purchasing a home along Florida’s Gulf Coast was beyond your reach. That’s not the case any longer.

REO or real estate owned short sales and foreclosures can be great deals for investors or owners. REO foreclosures can be very competitive for homes that will usually be priced significantly lower than the market value.

Here are three tips for buying a short sale or foreclosed home:
1.Understand the value of the short sale or foreclosure. Find out what the bank paid for the property deed and weigh it against the asking price.
2.Determine whether or not it is truly a good buy. What are the comparable sales listed at?
3.Look at what else is out there. Not all foreclosures are the best buy. Do some looking around before you settle on one foreclosure in particular. In this market there are many to choose from.

Basically, the more steps you take to show the bank that you’re a serious and qualified buyer, the more likely the bank will accept your offer over the others.

In our free eBook 12 Tips to Buying Real Estate in Southwest Florida, you can find 3 additional tips to use when you consider buying a short-sale or foreclosure.

Contact us today if you’re seriously looking to purchase a short sale or foreclosure in sunny Southwest Florida!

Web Reference: http://www.ackermanswfl.com
0 votes Thank Flag Link Wed Jan 11, 2012
Several helpful answers below, here is a resource to view active foreclosure listings in Fort Myers: http://www.greaterftmyers.com/fort-myers-foreclosures.php

Good luck with your search!
0 votes Thank Flag Link Sun Jul 24, 2011
You have to have proof of funds at time of contract, either bank statements and/or loan pre-approval. Once the bank has called for highest and best offers they will let you know if your offer has been accepted. Unless there is a problem with title, closing does not take any longer than other properties.
0 votes Thank Flag Link Sun Jul 24, 2011
1. You need to be approved for a loan all sales offers must be submitted with lender approval
2. Many foreclosed properties are distressed could require cash only purchase would not pass lender approval for a mortgage
3. Be prepared to wait for months IF the lender would eve accept your sales offer.

Just a few issues I could go on for years ;p

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Sun Jul 24, 2011
Use a competent Realtor.....If getting a loan make sure it is an experienced loan officer. If you have the right people that know what they are doing you will be guided properly and should give yourself a shot.

0 votes Thank Flag Link Sun Jul 24, 2011
Also, find a good lender that can provide you with a comprehensive Loan Pre-Approval. For more information on the Pre-Approval process you can read a post I wrote on it here:

0 votes Thank Flag Link Sun Jul 24, 2011
Usually an "As Is Contract with Right To Inspect"
The sellers look very kindly on cash offers. If you need a mortgage then have your prequal letter in good order.
They want a quick close so be prepared to do all your inspections quickly.
If it is a Fanny foreclosure they may insist that it will be your primary residence (or a non-profit) if you want to buy in the first weeks on the market. After that any bidder.
0 votes Thank Flag Link Sun Jul 24, 2011
There are really only two critical things that I would recommend;

Please find a Buyer's Agent to represent you, they will cost you nothing.
Please be patient; you may have to make multiple offers to get an acceptance, and fight against multiple offers when you do. The process takes longer, including a longer Escrow.

Otherwise, the steps are the same as a regular purchase.
Just follow your Realtor.

Good luck and may God bless
0 votes Thank Flag Link Sun Jul 24, 2011
Take a look at my company page regarding foreclosures: http://www.pinnaclepropertygrp.com/buying/foreclosures/

You can also sign up for a free account to receive foreclosure properties as well.

Robert Lee
Pinnacle Property Group
0 votes Thank Flag Link Sun Jul 24, 2011
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