Florida Foreclosures

A foreclosure or “REO” which means Real Estate Owned, means that the bank or mortgage company owns the property. These are homes which have been foreclosed on and the previous owner does not have any rights in the property.

When you are considering the purchase of Manatee County foreclosures or Sarasota County foreclosures, there are two options available.

The first option, is to go to a foreclosure sale auction, where the bank tries to sell the property on the “Court house steps” in a bid auction. The bank usually has a minimum bid amount they are looking for in the sale, and if they do not reach that amount they will keep the property and market it to the general public through a Realtor. As with most auction sales you should be prepared to purchase with cash in hand. Keep in mind that you are getting the property in an “as is” condition. The property could possibly have outstanding liens and even current tenants that you will need to be evict. You will need to preview the property and do your homework before going to the auction. Avery-Ayers & Associates can get you the access to these properties.

The second option, is to purchase a foreclosed property that is marketed for sale with a Realtor. This property did not sell at the foreclosure auction. The bank will handle the removal of tax liens, evict tenants if needed and will issue a title insurance policy to the buyer at closing. Mortgage financing is possibile in these transactions.

Beware of differences in forclosure transactions. Banks may be exempt from providing the buyer the usual transparentcy documents such as the property disclosure, homeowner disclosures etc. Also, daily fines may be in contracts to be collected if closing dates are not met.

Are all foreclosures a bargain? Be sure to get comparable prices of similar homes on the market in the neighborhood where you are considering purchasing a foreclosure. Also consider the cost of any repairs you will need to make.

When making an offer on a foreclosure, you will need to be prepared as in any home purchase. You will need to have proof of funds, a pre-qualification or pre-approval letter with the offer.

After you’ve submitted your offer, you can expect the bank to counter offer. Find out if you are competing against any other offers. Sometimes, in a competing offer situation, the bank will require that the propsective buyers give their “highest and best” offer. When this happens, this is your last chance to bid on this home.

Can you get credit towards your closing costs in a foreclosure sale? Yes, you can ask for credit at the time of your offer and the bank will weigh that and accept or counter that term.

Once your offer is accepted, it can take up to 2 weeks to get the signed, executed contract back from the bank.

There are still great deals available in most neighborhoods, including Lakewood Ranch forclosures.

To find foreclosures in our area go to: Search Foreclosures

Please contact us, Marie Avery and Terri Ayers, at 941-358-1818 or email Homes@AveryAndayers.com if you have any questions about our Florida Real Estate market.

About Marie Avery