Sth Tampa Foreclosure Advice Needed (bank owned, short sale, foreclosures)

[Hstern19]

I admit I a snob and want to live in the nice part of Sth Tampa. Just making that clear so others don't try to get me to move elsewhere as so often happens.

Is anyone familar with the foreclosure process? I see foreclosures for the loan amount on truila.com that are exactly what I am looking for but it all seems waaay to good to be true.

Any help is appreciated!

[BBI]

Originally Posted by Hstern19

Is anyone familar with the foreclosure process? I see foreclosures for the loan amount on truila.com that are exactly what I am looking for but it all seems waaay to good to be true.

If the house has been foreclosed on already and any auction completed without sale (i.e., the bank owns it free and clear), then it's pretty simple: you just buy it from the bank. Just google "buy REO property" and you'll find lots of information. If the property hasn't been foreclosed on yet, then you need both the owner and the bank agree to your price (if your price is less than the outstanding principal on the mortgage, it's a "short sale"). Getting permission from both is frequently a pain in the butt since at least one of them may not be focused on selling (or may not want to sell).

If you like a property, you need to call the listing agent to find out what's going on. Most importantly, you want to know whether the property is bank-owned, or whether you're going to have to deal with both the owner and the bank. Either way, you'll want to know whether the bank has approved the asking price (getting the bank to approve your offer can take months). You'll also want to know whether the property is occupied or abandoned so you can set your expectations before a showing (see below). But, really, get as much info as you can about whether a transaction is even possible. If there are two "owners" and one doesn't want to sell, there's no point going further -- it could be years before the property can be sold.

Of course, if a price seems to be too good to be true, it is -- particularly if the property been on the market a long time. In this market, in neighborhoods like South Tampa or where we live in the Old Northeast in St. Pete, a lot of properties are over-priced, but properties that are priced well are gobbled up. When we were house-hunting earlier this year (in South Tampa, among other places), all of the places with 'too good to be true' prices either (i) had some significant structural problem or (ii) were short-sale or REO properties that had been abandoned, had been stripped of all appliances and anything else not nailed down, and were in severe disrepair (termite contract lapse, some looked like squatters were living there, a couple had the wiring pulled out of the wall, one I'm pretty sure had been used as a dog kennel, etc.). So, before you arrange a showing at a place pricd that way, make sure you find out if the property is abandoned and/or any other information about it so you set your expectations straight. I'd ask up front whether there is any structural damage you need to be aware of so you know what you're getting into and don't waste your time.

[Hstern19]

Thanks for the detailed post! Def will be careful. It just seems like with a Bank owned the prices on the web are flat out lies!!

[Tampa Homes]

Originally Posted by Hstern19

I admit I a snob and want to live in the nice part of Sth Tampa. Just making that clear so others don't try to get me to move elsewhere as so often happens.

Is anyone familar with the foreclosure process? I see foreclosures for the loan amount on truila.com that are exactly what I am looking for but it all seems waaay to good to be true.

Any help is appreciated!

It depends. By the time a lot of that MLS data gets to affiliate sites it could be dated. I'm working with a young couple now looking at bank owned homes and more than half they send me (their searches) are already under contract when I pull them up on the MLS.

So they aren't necessarily being dishonest, they may just go fast if priced correctly. I can assure you that in many cases, this is exactly what is happening.

As far as "Too good to be true" many of these homes are bomb jobs that are strictly cash deals that require thousands more in renovation. So yes they may be great prices, but you're still going to have to put money into them. If you're a serious buyer, you want to get auto updates from a realtor and go see these homes as soon as they come online.

[bentlebee]

Please keep in mind that the warranty deed is only warranting the time the bank owned it. Already new buyers have been surprised with liens that needed to be paid off that were not covered from the bank owned the property and later showed up. You need a lawyer to get more guarantee you don't get a surprise as some have gotten, even years later.

If the bank owned the property for 2 month's than your warranty deed is only guarantee you these 2 months!!!

Many Realtors don't even know that. For a short sale the warranty deed will guarantee you the entire period the seller owned it, so more security.

The better the deal is in a foreclosure the more you can count on it that something could be wrong with the home. Banks don't give them away and rather do a short sale.

The bank will sell "as is" and claim that you have to do an inspection, since they are not aware of anything since they didn't live at the property.

I'm not saying a foreclosure is not a good deal, but it is "buyer beware!".