What are the steps to buy an apartment when it is bank owned (foreclosure)?

Asked by olgap222, 33010 Thu Aug 22, 2013

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Alan Drecksl…, , Miami, FL
Thu Aug 22, 2013
First, I would recommend that you get an attorney to do the title work prior to closing. Their can be serious title problems/issues with foreclosures that no one talks about when you purchase. Most of time the bank or institution gives you a general warranty deed or a special warranty deed. You need to make sure that you get insurable title as well as marketable title, before you close. Your real estate agent/broker should be able to assist you and guide you through the process. You can call me at 305-984-5300 and I can assist you with the process. Just be careful, foreclosures can be good if you purchase it properly.
1 vote
Maria Diaz, Agent, MIAMI LAKES, FL
Thu Aug 29, 2013
It is the same process to buy other kind of property. A realtor show the property to you, make an offer and the owner, ( in this case the bank) choose one offer among all offers received. Best regards Maria D Diaz Coldwell Banker
0 votes
Maria Elena…, Agent, Miami, FL
Sat Aug 24, 2013
In tend to agree with Trevor, not everybody is a good candidate for a foreclosure, it requires patience
and no fear of rejection.
REOs are sold in a in a multiple-offer situation. If you are going to buy cash, then it is possible, all you need to do is find a seasoned Realtor, preferably specialized in REOs. But if you are going to try to buy with financing, be prepared for a headache and the heartache because your are going to miss out on several properties. It is a tough competition, even being coached by a good Realtor.
If you are going to finance my advice is to look for motivated sellers and forget about REOs and much less short sales. Get pre-approved by a good mortage broker, make sure your credit is ran, your income is verified and get he document stating it is so. Your offers needs to be as solid as possible. .
Your Realtor should make sure that rate of delinquency on the subject complex will not hinder the loan. Getting financing for a condo is difficult enough to complicate it even more trying to buy a foreclosure. Chasing foreclosures, a few lucky persons that do manage to buy, but most just sign offers but never close.
Best wishes,

Maria Elena Ramirez Malca, CIIIS, SFR
Certified Inmigration and Tax Real Estate Specialist
Certified Short Sale and Foreclosure Specialist
Sellstate Gold Realty Corp
E-fax 954-839-6423
Cell 954-608-8726
0 votes
Margarita E.…, Agent, Sunny Isles Beach, FL
Sat Aug 24, 2013
The best way would be to choose an experienced real estate agent who would help you to accomplish the purchase.
0 votes
Yanoska Diaz, Agent, Miami, FL
Fri Aug 23, 2013
Dear Trevor, if I could upload the pictures of some of the Bank Owned condos I have recently sold I would. The condition of Bank Owned properties is very much related to location. I have listed and sold many condos in absolutely mint condition.
0 votes
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Fri Aug 23, 2013
Good morning olgap222,

I don’t think short sales or foreclosures (REO’s) are for everyone. It takes a special kind of Buyer to have the patience and the stomach for these types of purchases.


• Someone else's headache. Do you really want to walk in the door to someone else's repairs and deferred maintenance? YOU will have to pay to fix it up! Do you have the tolerance for that?
• Professional Investors. Cash investors can close FAST (3-10 days). And there are lots of cash investors competing against you!
• Difficult to Finance. Banks don’t want to lend you money to buy a home that isn’t habitable! Yes, there are special programs to assist you with renovation money, but those are more difficult to qualify for.

Short Sales

• Short Sales are better for the homeowner than for the Buyer.
• You'll wait MONTHS for the homeowner's Lender to approve the short sale
• You might not get the "deal" on price you expect.

If you don’t have the tolerance for Foreclosures or Short Sales here’s my advice:

There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay.

Trevor Curran
NMLS #40140
0 votes
Meg Sahdala, Agent, Coral Gables, FL
Fri Aug 23, 2013
Dear Olga,

Same as with any other property. A real estate agent needs to prepare an offer for you along with your preapproval from your bank or proof of funds if you buy cash.
I will gladly go over the process with you and represent you if you are not working with any agent just yet. Please contact me directly at meg@viviendarealtors.com
0 votes
Stephanie Le…, Agent, Miami Lakes, FL
Thu Aug 22, 2013
First step would be to find out if the property is listed with a realtor.

If listed then you should consider working with a agent who has foreclosure experience.

Please note that Foreclosure sell to the highest and best offer. So be ready for a bidding war.
Web Reference:  http://www.realtyempire.net
0 votes
marc jablon, Agent, Boca Raton, FL
Thu Aug 22, 2013
If it's listed for sale as an REO, you may want to work with a real estate agent. If it's an REO, (foreclosure) then the bank will solicit multiple bids. The condo will be sold to the highest and best bid.

Your initial step is to visit the condo, then if it appeals to you and you think the price is reasonable, talk to your agent about making a bid.

If the condo is in reasonable condition, expect that it will sell for more than the listing price. The bank will accept the highest (the most money) and best (always cash) bid.

You may want to have an inspector in before you bid just to make certain there are no unexpected repairs you will be faced with if yours is the winning bid.

Talk to your agent about hiring a title company or a real estate attorney in order to make sure the property is free of liens and that the chain of title is clear.

With all of that in mind, if you're ready to move forward, decide what you think the condo is worth to you, and then make an offer.

Marc Jablon, The Jablon Team
Re/Max Complete Solutions
0 votes
Yanoska Diaz, Agent, Miami, FL
Thu Aug 22, 2013
The steps are quite simple if you are working with the right agent. Please visit my profile, review recent REO sales I have closed (all REO) then choose to contact me so that I can send you more information. I have a few REO listing that are on pre-marketing stage and will soon be on the market.
0 votes
Vicqui Zavala, Agent, Doral, FL
Thu Aug 22, 2013
Hola Olga,
Todos los pasos te los indica un profecional en real estate.
Si deseas que te ayude contactame directamente.
Vicqui zavala
Realtor asociado
Real living first service Realty
Cell 786-553-3824
E-mail vicquizavala.realtor@gmail.com
0 votes
Ann Ryan, Agent, Doral, FL
Thu Aug 22, 2013
I suggest the following:

1) Identify how you're going to pay for the property. Cash or finance? If finance, what sort of loan - conventional, Homesteps, Homepath. Get prequalified, and know how much hosue you can buy.

2) Go and look at individual properties for sale. Will they meet your needs? How much work do they need.

3) Analyze how much you should pay for the property. Some foreclosures are priced under market value, others are over. Know what a comparable home would sell for. Do not pay more than a similar home would cost under a regular sale.

4) Make an offer. You need to keep in mind that there's a lot of competition for foreclosures, and you will not be the only offer on the property. If you're not a cash buyer, you probably should be a little aggressive and offer more.

5) If the offer is accepted, have the home inspected and appraised.

6) Close the deal.

I'd be happy to help you through the process, and have experience working with these sorts of sales.

Ann Ryan
Keyes Real Estate
Se Habla Espanol.
0 votes
Margarita E.…, Agent, Sunny Isles Beach, FL
Thu Aug 22, 2013
Choose a real estate agent and he/she will organize it for you.
0 votes
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