Buying a Distressed Property

Homes that have gone through a foreclosure or short sale is a terrific opportunity for buyers to buy a property at a lower price. Currently, over half of the properties for sale are considered distressed properties. The process of buying a distressed property may be long but for the price, it may all be worth it. It is very important that potential buyers of distressed properties perform the necessary tasks to get the property inspected before making an offer. Another important factor is finances, a homebuyer should have everything in place before making an offer. There are several types of distressed properties and it is up to the buyer to make a choice.

Short Sale: Short sale is a sales transaction in which the seller’s mortgage lender agrees to accept a payoff less than the balance due on loan. In most cases, the owner has stopped paying their monthly payments. Short sale is the first step to avoid foreclosure. It is best to avoid foreclosure because the cost of foreclosing on a property may be more than the bank’s loss. In the short sale process each bank evaluates every individual request and the lender will consider the borrower’s finances, an appraisal and market conditions.

The Hayslett Team specializes in short sales and listings all throughout the Tampa Bay area, some of the best and popular areas are Clearwater Beach, Belleair, Dunedin, Safety Harbor and Tampa. Please click here to search for the best deals on short sale properties.

Bank Owned / REO: A REO is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. Usually what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. After that the property goes back to the bank and it becomes an REO. The bank will now own the property and the mortgage loan does not exist anymore. The bank may do some repairs, negotiate with the IRS for removal of tax liens and pay off homeowners association fees. As a purchaser of a REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.

You have found the perfect source for bank owned properties. Whether you are an investor or first time buyer, you will find land, condos, townhomes and single family homes for sale at huge discounts. Bank owned homes always have a clear title and we can help you deal directly with the lender. Currently, they are motivated to sell thousands of bank owned properties.

Foreclosure: Foreclosure occurs when a lender or other lien holder takes possession of a property because the owner has failed to make regular, timely payments and other efforts to collect the money have failed. Foreclosure can also occur if a homeowner fails to pay property taxes, homeowners association fees and contractor’s bills. After a lender takes possession of a property through foreclosure, the lender usually wants to quickly sell the property rather than bear its expenses. If you are buying a home from a bank, the bank usually pays any outstanding debts such as property taxes in order to sell the property with a clear title. The bank has the flexibility to negotiate on selling price, downpayment, interest rate and closing costs.

Foreclosed properties can be a great opportunity for buying properties at tremendous discounts, ranging from 30% - 60% off their actual market value. There is a wide selection of foreclosed homes to suit your needs from beachfront condos such as Regatta Beach Club to waterfront estates such as Island Estates homes.

A strong suggestion to any buyer looking for distressed properties is to obtain legal advice from a competent real estate attorney.

With the full understanding of the long process of purchasing a distressed property and an agent who has full knowledge of this market, you can get a great home for a great price. Kenny Hayslett is a realtor who is certified distressed property expert. The Hayslett Team is here to help you find your dream home. Please fill out our contact form or just give us a quick call.

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