Foreclosures/ short sale info

Asked by Shawnandbritany, Apollo Beach, FL Sat Mar 16, 2013

I recently asked about the best neighborhoods for families. I was wanting a little more info on short sales and foreclosures. Houses listed at 75k? What's the catch? The thought of relocating and buying a home free and clear is very appealing, but I'm not sure I understand all the aspects.

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4
Antonio Vega…, Agent, Saint Cloud, FL
Sat Mar 16, 2013
This brief article on short-sales vs. foreclosures has clarified questions for many buyers:
Click > http://www.trulia.com/blog/antonio_vega-pacheco/2009/12/fore…
2 votes
That is perfect. Thanks so much!
Flag Sat Mar 16, 2013
Lisa Reeves, Agent, Tampa, FL
Sun Mar 17, 2013
Foreclosures and short sales are both considered to be distressed sales. To buy both you will want to have either strong real estate knowledge and previous homeownership experience or a good real estate team to help you. Both can be great for you to get a home at a great price - but they also can have many hidden issues.

Short sales - are homes that are being sold because the homeowner is currently having issues and had a previous issue that they cannot recover from. The homeowner and buyer agree to a contrac price and the homeowners lender approves the price based upon market comparables and any deferred maintenance on the property.

Foreclosure properties or REO's are the ones that the bank has already gotten through court action from homeowners. The bank then markets the property to sell to recoup their loss.

Both properties have to be marketed through local real estate agents. Ask a local realtor to set-up a search for properties like this for you to see in the areas that you have picked. Good-luck.
1 vote
Rick De Barr…, Agent, Lakewood Ranch, FL
Sat Mar 16, 2013
A foreclosure is a home sold at a courthouse auction, no set price just what the highest bidder is willing to pay. Catch here is the purchase is all cash, with no title insurance, most times sight unseen.

If a lender takes ownership at an auction, it becomes an REO, Real Estate Owned. They usually list it at a slight discount due to condition or lack of warranty. You may hear this was a "foreclosure" home.

A short sale is a bit of a gamble. It is where a homeowner owes more than the home is worth, and has a hardship. They list the home at a guesstimate price and when a potential buyer signs a contract to buy, it is subject to third party approval. That means lender will negotiate a settlement with the homeowner. The buyer has no rights except to be first in line, to decide if they will buy the home at whatever price the lender ultimately agrees to release it at. Buyer is taking home in As Is condition, and lender can actually withdraw their offer at any time before closing. With home values increasing, they are expecting price closer to market value, revisiting home value right before closing. Buyer has no recourse other than to walk away. Many times a short sale takes more than one buyer before it actually sells. This is for someone that does not need a home in a specific time frame.
Sometimes you can find a short sale at "Approved Price", that means lender has reached a settlement price, and might close sooner.
0 votes
Alma Kee, Agent, Tampa, FL
Sat Mar 16, 2013
Hi,

Unless a Short Sale has been "approved" the asking price is pure fiction. Also lenders will do their own independent appraisal or Broker Price Opinion so you cannot buy a property much below full market value.

Right now we are in a Seller's market in Tampa Bay so if you can pay cash you will be able to compete in the multiple offer scenarios seen on every property listed.

If you need to get a mortgage, you may want to focus on a HomePath, HomeSteps or HUD owned foreclosed property since they are only available to owner-occupant buyers. You will still have to compete with at least 10 other buyers but most will not be ALL CASH.

If you would like to search with "genuine" info on the current status (note: some websites will show properties that are "active with contract" as "active"), you're welcome to sign up for a listingbook account on my website: http://www.SoldOnTampa.com

Active with Contract listings are under contract and you cannot buy them until/if the current buyer backs out. If you can pay cash, the seller may consider a "backup" offer and you may be able to get a bargain on a Short Sale if the current buyer walks and you can pay cash and close within 2 weeks.

Apollo Beach has a coal fired power plant and some of the surrounding areas may have higher crime so you may even want to rent for a year to get familiar with our neighborhoods before buying.

All the best,
Alma
Alma Rose Kee, PA
Future Home Realty
813.244.9898
0 votes
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