George Gamble

As someone who's actually lived IN CITY PLACE and a REALTOR who has been in the business for 30+ years in West Palm Beach, I would not recommend buying anything in Downtown West Palm Beach at this time. .....UNLESS you read all of my reply..... There is a 3 year(minimum) supply of new and resale inventory available and this number is expected to DOUBLE in the next 6 months as new unsold inventory comes on line.

Check out http://www.realtytrac.com to get an idea of what this nightmare is really like. Try searching zip code 33401(downtown wpb) .. there are as of today 1431 active properties of which 918 are "pre-foreclosures" , 39 up for auction, 173 Bank Owned, and about 280 FSBO and REALTOR listed properties. the typical market activity for this zip code is around 300 units available in a "normal" market. We haven't had a "normal" market since 2002-2003 and the "equilibrium" level for this market is the "pre 2003" price level.. so do your homework!!!!!

Buy now if you can get a Condo at the "pre-2003" price .. you'll do well as the market continues its decline to that level.... and it will.. it's inevitable.

Also, look into the monthly HOA fees and taxes on these units.. in some instances, the CAM and Taxes exceed the monthly mortgage payments.

Again, do your homework!.. there are some fabulous buys to be had but you've got to know the market intimately...

Hope this helps! - Sat Mar 15 2008, 08:19

Hi Jeff:

Sounds like your REALTOR did his/her job & submitted your offer... the problem is... It's a foreclosure and the Bank/Mortgage Servicing Organization may not have the authority to accept your offer. If the property is owned by Aurora, Citi, Five Brothers, Safeguard, and numerous others, these are loan servicing organizations and they're under no obligation to respond to your offer.

Buying a foreclosure is a time consuming, frustrating, and often futile experience because most foreclosure buyers don't understand the basics. The lenders are obligated to get the highest possible price for the property to protect their shareholders interests and it's quite possible the lender is simply shopping your offer to see if anyone else is willing and able to pay more. It sucks and it's perfectly legal.

Another issue to consider is your "pre-approval" for financing. Foreclosure lenders require a "pre-approval" from your lender of choice to submit with your offer. Look at your "pre-approval" documentation and see if you are approved "subject to normal underwriting" criteria. If this language exists in your documentation you're not "pre-approved". You must demonstrate to the lender that you're in a position to pay "cash" for the property and close in 10-20 days.. period... This is what they look for and if your "pre-approval" is weak, they'll continue to solicit other "better" offers while they keep you dangling.

Have you done your homework on the property you're trying to buy? You can view the Original Deed and Mortgage and the foreclosure documents and any other liens or important recording information online at the Palm Beach County Clerk of the Courts Website. You can view the Property Appraisers documentation online as well and it'll give you much valuable insight into what and whom you are actually dealing with.

Also, beware of terms like "Pre-foreclosure" and "Short Sale" in the listings you're viewing. Just because a property is listed at a "Short Sale" price, doesn't mean that the bank or LSO will actually sell the property at that price.. If you want to be the "best:" buyer for this property, get your loan truly "pre-approved". This means that your lender has actually verified all of the information in your application( employment, income, assets, funds to close, and of course credit) and is prepared to submit your loan for approval. Some local lenders will give you a "Conditional Committment". This means they've done their work and this written committment guarantees they'll fund you subject only to a satisfactory appraisal, survey and clear title to the property you're trying to buy.

I currently deal with 7 of the largest mortgage companies in the nation doing Mortgage Verification/ occupancy verification and pre-foreclosure field inspections and have just started a Real Estate Brokerage Company in Broward and Palm Beach Counties to service the clients we have been doing inspections and property preservation work for to sell off their Real Estate Owned properties. These companies are simply overwhelmed by the sheer volume of defaulted mortgages.. so , my advice to you is don't become personally attached to any "foreclosure" property you're bidding on.. remain detached and objective and understand this is a process, not an event.

You may be successful if you remain patient and do not expect a response to your offer for at least 2-5 weeks.. That's right.. 2-5 weeks on average. Another caution: just because they accept your offer(at some point) doesn't mean that your sale will actually close escrow. There are a myriad of variables that can kill a foreclosure sale so, my advice to you is to actually sit down and READ every document you've signed and will be asked to sign and don't get emotionally involved in this process. It's simply a business transaction and you are a smart business person...keep your options open and be ready to move on to another property if this one doesn't work out.

Buying a foreclosure is a "crap shoot" at best. Beware of terms like "instant equity" or "Save thousands" or any myriad of similar come-ons.. The price you pay for your "Foreclosure" becomes the "top of the market value range" when you are in an area of numerous foreclosures,pre-foreclosures or bank owned properties. The definition of "Market Value" is : The Value at which a willing buyer and willing seller are willing to buy and sell.

Hope this helps and good luck in your quest! - Sat Mar 15 2008, 07:54