As the coffers of many banks around the nation swell with abandoned real estate, and foreclosure rates continue to skyrocket, a unique opportunity presents itself to many real estate investors.
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Bank Owned Property (REO)
Bank owned property is property in which the bank has acquired title via foreclosure. Unlike a short sale - where the bank needs to be convinced that accepting a lesser amount then what is owed, and writing off the bad debt, is better than foreclosure - bank owned property has already been foreclosed upon and the bank tends to be more receptive to lower offers simply to get the bad debt off their books.
There are many things to consider when searching for bank owned property but the most important in my mind in structural integrity. What do I mean by this? Structural integrity, or 'the bones' of the property, are things such as the roof, the exterior construction and the foundation. If these vital elements are intact and in good condition then everything else can be either repaired or replaced and you are on your way to having a great piece of real estate for pennies on the dollar.
Another very important consideration when looking at bank owned property is overall condition, but more importantly the presence of mold and WDO’s (wood-destroying organisms). For example, once a property has been foreclosed upon they usually shut off the power. And enclosed spaces, such as a home, in a hot and humid climate, such as Florida, tend to mold, mildew and rot at an accelerated pace.
Furthermore, with no one around to monitor and maintain the property, bugs move in. It is in these situations more than any other that the term caveat emptor - buyer beware - really comes to the fore and an extensive home inspection by a licensed professional is a must.
There are many bank owned properties in Bradenton and we at the Adkins Florida Group, Inc. can tailor our property searches to include only those properties that are bank owned, providing you greater a opportunity to locate and purchase undervalued real estate.
So, if you are a handy man looking for a remodel, or simply a shrewd investor wishing to own un-polished real estate, pursuing bank owned properties may be your best option. And in our current market there are plenty of opportunities to pick up ugly homes with strong bones at unbelievable prices.
Let us help you find that ‘diamond in the rough’.
There are many options available to home owners in trouble, such as a short sale, to avoid foreclosure. We at the Adkins Florida Group, Inc. are dedicated to helping you make the best and most informed decision possible when it comes to staying in your home. Let us show you how.
A foreclosure is when a mortgagee (lender) files court action against a mortgagor (borrower) and records a notice of a pending lawsuit, or Lis Pendens. Once this court action is filed the borrower must be notified of the pending legal action and must be given a certain period of time in which to respond. If no response is given from the borrower the court will set in motion a judgment against the borrower and set a date for auction of the property.
In Florida, the equitable right of redemption for the mortgagor whom is being foreclosed upon expires when a Certificate of Sale is issued. Meaning that the homeowner is able to retain possession of the property by paying all debts owed before the day of the sale. If the homeowner cannot or does not settle the debt owed on the property in question before the day of public sale the property goes to public auction either on the county courthouse steps at 11:00 am, 30 days after the judgment has been filed or the auction will be held online. The successful bidder on auctioned property must have 5% down, with the balance being due by the end of the day. For sales that are conducted online, it is not necessary to appear in person to participate.
A recent law change now mandates that all attorneys participating in foreclosure proceeding MUST APPEAR IN PERSON and can no longer simply phone it in... This is good news for Manatee and Sarasota Counties and all those folks struggling with their mortgage payments. SInce the attorneys represnting the bank must now appear in person it is my opinion that we will see the rate of foreclosures calm down tremendously, thus allowing more time for real estate professionals and home owners to work out a short sale.
If you are facing a foreclosure and the bank refuses to negotiate your interest rate, and a short sale seems to be the only way out, please give us a call, we can help.