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Old 07-12-2008, 04:59 PM
 
42 posts, read 90,756 times
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I'm familiar with the Sarasota area, but not North Port. We're coming down in October to check out North Port for a retirement or second home. I am aware of all of the recent foreclosures. My sister-in-law has a house in Longboat and saw a home on her street that is being auctioned by Us Home auctions.

I have NO knowledge of where to start to educate myself about buying a house at an auction. Was hoping some of you realtors on the board could give my some ideas about where to start and what to watch out for.

Thanks!
Summer
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Old 07-12-2008, 05:40 PM
 
Location: Palm Island and North Port
7,484 posts, read 20,863,622 times
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I personally think that you can pick up a better home as a foreclosure than at auction. the auctions that I have attended if they are absolute they have lots of issues with the home or they get bid up over what you would pay for a foreclosed home in that area. If they have a reserve it is usually set higher than what you would pay for a foreclosure in the same area.

Generally, banks are willing to wheel and deal on the foreclosed property. We've had many customers in the last few months get homes for in the 150K range that are nearly new, 3/2/2, 1800 sq ft or more, in good neighborhoods. If you are looking in North Port, for the most part, flood zones will not be an issue because most of North Port is not in a flood zone.

Right now there are 1163 homes in North Port that are 3/2/2, 2000 or newer. 72 of the properties are bank owned. So there are many properties to choose from it just depends on what you like.

You'll probably see many listings marked short sale or needs 3rd party approval, which is just another way to say short sale. These properties usually take quite a long time to close and often times they go for way over what the Realtor has them listed for.

Hopefully this has been helpful
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Old 07-12-2008, 07:35 PM
 
Location: Palm Island and North Port
7,484 posts, read 20,863,622 times
Reputation: 2837
I wanted to also mention that auctioneers almost always pay a commission, so I'm not forming my opinion on that basis.
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Old 07-13-2008, 01:13 AM
 
Location: Louisiana
31 posts, read 99,486 times
Reputation: 15
I seen that on quite a few properties.."short sale"..what does that mean?
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Old 07-13-2008, 08:16 AM
 
Location: Palm Island and North Port
7,484 posts, read 20,863,622 times
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Short Sale means that the bank is agreeing to take less than what is owed on the mortgage. So, here's what happens. The bank must have it listed with a Realtor to do a short sale. The bank doesn't tell the Realtor what they will take for the property until they have an offer in. The Realtor usually lists the home for way under what the bank would even begin to consider (remember the Realtor knows what is owed on the home). So if they owed $250K, often the Realtor might list it for 75K to get offers in. They have a little clause somewhere in the listing saying "the list price might not be sufficient to cover all expenses, etc, etc". You might ask, "Why would they do this?". Well, if a home is worth 250K and you are listing it for 75K your phone would be ringing off the hook to show this property, wouldn't it?

On top of all of this many of the banks like Countrywide take months to even answer you back. Chances are that if you call the list agent on a short sale they will say something like, "You don't really want to offer on a short sale because it takes so long to hear back and you probably won't get it for list price-it will go for more. You see the list agent doesn't want their buyer wasting their time with a short sale. They will probably direct you to another property.

Now, not every Realtor lists them like this but I would say 95% of them do. In my opinion it's more of a bait and switch kind of tactic. When I list a short sale I use comparable properties in the neighborhood to come up with the list price and you will know in the listing that it is a short sale because I will put it in the first sentence.

I guess what I am saying is that you just need to be careful if you are offering on a short sale and if looks too good to be true, it probably is.

Foreclosures, on the other hand, are a whole different ball game. Whatever you see for a list price is what it is going to sell for (unless there are multiple offer and you get outbid). It usually only takes a day to a few days to get an answer back as well.

The short sales get really confusing to the public and personally I wish the banks had to give a list price at the time of the listing. The public is used to seeing a price and thinking they can get the home for the advertised price-not so in this case.

Many Realtors don't even inform the public that they are looking at a short sale. We can usually see that it is a short sale in the private comments that you can't see but often times, you aren't aware of this until you call on the property. Then sometimes they won't come out and say it's a short sale but they may say something like, "list price is not sufficient to cover all encumbrances, or subject to 3rd party approval, etc" This usually is translated to we put a b.s. price on the listing to lure in buyers but it's not really what the bank will sell the property for.

I've never seen anyone get a real "deal" on a short sale. I would wait until the home goes into foreclosure to get a deal. Unfortunately, the banks just aren't willing to sell it for a really good price until they own it. That's just my opinion after dealing with hundreds of short sales.

One final note, the only bank that we have seen that answers back quickly and sells for a reasonable price is BB&T. It has a lot to do with who is on the other end of the phone. The banks don't usually deal with the short sales themselves they hire asset managers to do this and from my experience they don't really care if you buy the property or not. They get paid the same either way.

So you have an idea of the wait time on a short sale, I have a short sale that I listed last August and I'm still trying to get the bank to sign off on the deal. The buyers offered a reasonable amount and I have com parables to support this price. I call the bank twice a week, every week and get the same story-we are reviewing and we'll get back to you as soon as we have an answer.

Last edited by SoFLGal; 07-13-2008 at 08:32 AM..
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