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.
This is the fifth tip in our series: â€œ12 Tips for Buying Real Estate in Southwest Floridaâ€ 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 Floridaâ€™s Gulf Coast is second to none. You may have thought that purchasing a home along Floridaâ€™s Gulf Coast was beyond your reach. Thatâ€™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 youâ€™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 youâ€™re seriously looking to purchase a short sale or foreclosure in sunny Southwest Florida!
Good luck with your search!
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
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.
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
You can also sign up for a free account to receive foreclosure properties as well.
Pinnacle Property Group