I'd like to take advantage of foreclosed properties. How do I get started?

Asked by Daniloramirez, 34684 Wed Feb 3, 2010

I'd like to buy a 4-5 br foreclosed or bank owned property in Palm Harbor, FL. How do I get started?

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Loretta Buck…, Agent, Palm Harbor, FL
Thu Feb 4, 2010
Really great answers, already--I just had to weigh in, since I've been involved in every possible angle of foreclosed properties. If you're looking to buy 4-5 in Palm Harbor, you do need to be certain you have a bunch of cash--and that it's verifiable and liquid. A letter from your bank or a recent bank statement will be required to place offers.

My last REO listing, which was a well-priced pool home in good condition in New Port Richey, had one full-priced cash offer the first day it went on the market--many of the subsequent buyers who called on it were disappointed when they were told that, particularly the FHA buyers. The house closed in 31 days at 3% over full price.

The point is--do not think that you can lowball offers--the banks hire very astute people to do the research for them, and only the ones in the worst condition end up selling for a fraction of market value.

Does this mean that you can't find deals? Of course not--there are deals in any market, this one is no different. Some of the best deals on homes in the best condition are, in fact, short sales--these are often still occupied by the distressed seller, therefore properly maintained--unlike many foreclosed homes, which have sat vacant for months or years.

Best strategy is, if you do not know where to start--begin with someone who does!
1 vote
Madeline Gre…, Agent, Clearwater, FL
Thu Feb 4, 2010
I agree with the others that you have a good understanding regarding the process involved in buying bank owned properties, known as REOs. One item not mentioned is that you MUST do your due diligence and get a title search before going after a REO property. You want to know what liens exist against the property, if there are any criminal or civil issues involved with the property (just ran into this situation the other day) , and you want to be sure you can get clear title to the property.

Another option, if you have the time to wait, is buying a short sale instead of a foreclosure/bank owned property. You can get a great deal on a home through a short sale without all the risk involved with REO properties. The process can take awhile, but it is getting better. Starting in April there are new guidelines that will hopefully make the process shorter and easier.

I am a Certified Distressed Property Expert and I hold the Short Sales & Foreclosure Resource designation through the National Association of Realtors. I have lived in Palm Harbor for over 25 years. There are great deals on homes all throughout the Palm Harbor area. If you are not already working with a realtor, I would like the opportunity to help you find the right home.

Madeline "Matty" Green, Realtor, CDPE, SFR
Keller Williams Realty
1 vote
Alma Kee, Agent, Tampa, FL
Mon Feb 8, 2010
If you're planning to pay "ALL CASH" you should be able to buy at the best possible price. If you're borrowing money to buy the foreclosed properties, you will need at least 20% down. The important thing to make your offer as strongas an ALL CASH offer is to have a solid Loan Commitment (not a preapproval, but an actual commitment to fund your loan) from an actual lender (not a mortgage broker that doesn't lend money). You can get a full Loan Commitment fairly quickly from:

Kristine Bredeau, Vice President
Mortgage Branch Manager

3725 West Grace Street Suite 300
Tampa, Florida 33607
Direct: 813-549-7234
e-Fax: 813-902-6621
email: Kristine.Bredeau@homebanc.com
Apply On-Line: http://www.KristineBredeau.com
0 votes
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Thu Feb 4, 2010
Contact a local realtor and start making offers. It's pretty easy if you've got the money. Good luck.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Thu Feb 4, 2010
Not is a great time to acquire real estate at great prices. Along with understanding the process and risks, you need reliable resources such as a real estate attorney, title company, inspector in addition to a comprehensive list of available distressed properties.

Give me a call and we can review the process and resources available, establish your objectives and timeline and get a list of homes to you.
Annette Lawrence
ReMax ACR Elite Group, Inc
727. 420. 4042
Web Reference:  http://www.MyDunedin.com
0 votes
Michael W. M…, Agent, Clearwater, FL
Wed Feb 3, 2010
Over the last few years I have represented a large number of Buyer's in purchasing Bank owned properties in Pinellas County. Just as stated in the previous answer, Cash is King when it come to buying properties from the Banks. Also as stated you most definately want to make sure you have someone who know the ropes in dealing with the purchase of REO properties. Also, there are a couple of different ways to go about the purchasing foreclosed properties. The first being directly from the steps of the courthouse, and the second being from the bank or asset management company. As you would expect there are pros and cons to both. Please feel free to contact me directly and I'd be glad to discuss the process and some of your options in more detail.

Michael McCullough, P.A.
Charles Rutenberg Realty, inc.
(727) 631-5050
0 votes
Aaron Catt, Agent, Meridian, ID
Wed Feb 3, 2010

If you haven't done so already, I'd make sure you understand foreclosures inside and out first. If you can't or don't want to do that, hire someone who knows the ropes.

Then, I'd make sure you have cash, a good list of homes and a very strong stomach!
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