Foreclosure in Punta Gorda>Question Details

Alan Xanders, Home Buyer in 62837

At a sheriffs sale on a foreclosed home, Is it better to let property revert back to the mortgage holder if no other biders are at the sale?

Asked by Alan Xanders, 62837 Sat Jan 16, 2010

what are the advantages and disadvantages letting property revert back to the mortgage holder at sheriff sale? Can you choose any realtor to repersent you when dealing with mortgage holder?

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Hi Alan. Both previous answers are correct. Should the property revert back to the bank there is a 99% chance that the property will be listed as an REO property on the MLS and if the bank is smart they will list it at an aggressive price point. With that being said there are many lenders who intentionally list their property with a LOW list price to encourage mulitple offers on the property. The banks sole purpose is to get buyers to bid against each other with price. Lenders will require with any offer proof of funds (bank statement or letter from your bank stating you have liquid funds to close the transaction) if you are paying cash, or if you are using financing then you need an approval letter from a lender stating you are approved for a loan. Lenders will not even look at your offer if it is not submitted with either or of these documents. I have experience with REO properties and would be happy to represent you as your buyers agent. Charlotte County is my area of expertise. Have a nice day.

Jason Stevens, REALTOR®, GRI, ABR
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Kevin Flynn Realty, Inc.
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0 votes Thank Flag Link Sat Jan 16, 2010
The house will automatically revert back to the bank if there are no bidders or the bank does not get the minimum bid for the property. What usually will happen next is that the bank will list the property as an REO property (bank owned). You as the buyer can use any agent you wish.

Keep in mind though that the process can take a long time, you will get little information as to where you are in the process from the other side, and you need to keep an open mind regarding the property. You will want to do a home inspection, make sure there are no liens or back taxes the buyer may be responsible for, don't expect the bank to make or give a credit for any repairs, be prepared to pay for turning the water and electric on and off for your home inspection, be prepared to pay for any repairs that may be required by the town before you can close, and be prepare to move on to another property even after putting all the time and effort into the first property. Many times the property does not pan out or the bank denies the offer well into the process and then you need to start over. Not all transactions happen this way, but don't be surprise or blame you agent if it happens.

Also, you need to be approved and ready to go on quick notice. Many times once the bank approves the sale you get notified of a closing date and need to be able to close on their terms. Good Luck
0 votes Thank Flag Link Sat Jan 16, 2010
Hi Alan,

2 questions in a short period. What's up? What are the details?

Sorry, I'm not sure what you mean here. If there are no other biders, then of course the property reverts to the mortgage holder (assuming that they were the ones who secured the judgement of course.)

There is one huge advantage of letting the bank take the property back. When they sell it, it will have a clear title and be free of liens, which was your previous concern.

Yes, you can choose any realtor to represent you. Need a referal? Send me the details and I'll recommend a local realtor to you.

Good luck,
Mark LeMenager
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0 votes Thank Flag Link Sat Jan 16, 2010
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