How To Know What to Offer on a Bank Owned Foreclosure Property…

We had an excellent question this week over at the Spring Hill Real Estate Buyers & Sellers Q&A Forum.

Spring Hill Foreclosure Properties If you’re curious or interested in purchasing foreclosure properties in Hernando County, Florida (or anywhere else, for that matter) it’s definitely worth your time to give it a quick read.

I went into detail about some of the process, what to expect, and perhaps most importantly - how to come up with the price you should offer the bank for their property to ensure that you get the best deal possible.

Remember - if you have any questions, contact us any time and we’re happy to help!

Thanks,

-Josh

If a Spring Hill Home for Sale is in Pre-Foreclosure (Short-Sale), Can I Still Negotiate on the Price?

Reprinted from the Spring Hill Real Estate Buyers & Sellers Q&A Forum.

Spring Hill Real Estate Overworked Asset Manager This question was recently posed by a potential buyer:

If a Spring Hill Home for Sale is in Pre-Foreclosure (Short-Sale), Can I Still Negotiate on the Price?

This is a question that has both a short and long answer. The short answer is as follows:

Absolutely - one of the wonderful things about real estate is “Absolutely Everything is Negotiable”.

And now for the long (but definitely more informative) answer…

You must first define “pre-foreclosure” and/or “short-sale” to make sure that we’re all on the same page. I wrote an article about short sales on the Hernando Luxury Homes website - make sure to take a look if you have any questions…otherwise I’ll assume we’re on the same page and move forward from there.

Next we must understand the process by which a short-sale or pre-foreclosure is sold. There are several stages or dominoes that must all fall in order for the deal to go through (this is why short sales can take up to 6 months or longer to close).

How do Short Sales Affect a Potential Buyer, and What to Do About It.

This is going to be a multi-part entry on short sales detailing what they are, what they aren’t, why they’re not bad for the real estate market, why they ARE bad for the real estate market, and whether or not you should look into purchasing one. Read more

What is a foreclosure and why should I look for one?

What is Foreclosure?

Foreclosure is the process by which a lender reclaims a property from a homeowner who has defaulted on their loan.

“A” foreclosure refers to a property that is now owned by the bank. Banks don’t like to hold property. Owning property means keeping up with maintennance, upkeep, utilities, taxes, and etc…and that costs money. Banks like holding liquid money. As a result, they hire realtors to sell off their “foreclosure” properties or “REO” properties. REO stands for Real Estate Owned (as in, by the bank). Read more

Short Sale, Short Sale, Short Sale!!!

I’m sure you’ve heard this buzz-word repeatedly over the past few months…especially if you’ve been paying attention to the Hernando County Florida Real Estate Market.

The big question, though, is “What exactly IS a short sale?”

WELL - a short sale occurs when a bank agrees to take less than a homeowner owes as payment in full for the loan. The easiest way to explain this is with an example.

Say you owe $200,000 on a very nice home that you bought in Spring Hill, but because the market has been declining, your home is now only worth $180,000. You go to the bank and say “I’ve got an offer on my home of $180,000 and I need to sell it…I know that I owe you $200,000…but I can’t afford my payments and if you don’t take the $180,000 you will have to foreclose on my home”. The bank then looks at the numbers and makes a determination as to whether they would rather take the $180,000 (and lose $20,000 on their loan amount) or foreclose on the property, sell it at auction, and hope to make more than the $180,000 when all is said and done (foreclosures are expensive for a bank…and you never know where the property will end up price-wise at auction…so in many cases, short-sales can work out better for everyone involved).

Sounds like a great thing, right? SIGN ME UP!
Read more