Repossessed Homes for Sale
Buying in Florida
Repossessed homes for sale, also known as bank foreclosed homes, can provide the perfect opportunity to purchase homes at a great price. The following focuses on an overview of how it is generally done in Florida with a focus on real estate in Sarasota FL. Practices can differ by state and municipality. Read our disclaimer information.
This is a TWO PART article. We recommend starting with this article and then reading Part Two .
When an owner fails to make mortgage payments or is unable to honor financial commitments, the lender will 'foreclose' or take back the property. Since the lender wants to quickly recover as much of their investment as possible, property is often sold for 20-60% below market value.
The major consideration in buying foreclosed homes for sale is its condition.How long the home has been empty? The longer a home is empty, the higher the potential for problems as the house has not been properly maintained because the previous owners in many cases were financially strapped.
Additionally, when a bank takes over the property, they turn off the water and utilities, so it is important to check for things such as moisture damage and mold. Lawns and pools are also not cared for.
Before making a offer, do your best to evaluate the condition of the property. Offers in Florida are contingent on the house being inspected. Once the offer is accepted, you generally have 10 days to inspect the home. In most cases you buy the property "as is".
Other considerations are more obvious:
Know Prices: Check the value of similar homes in the area so you recognize a fair deal for a foreclosed property, taking into consideration any repairs that need to be done. Ask your real estate agent to do the "comparable's" (sales price of other homes in the area).
Making the Offer:In Florida, there are specific forms that have been approved by the joint committee of Florida Association of Realtors and The Florida Bar. These are uniformly used and reduce the need to use a real estate attorney.
When making an offer on a foreclosed home, you complete an "As Is" contract for sale. This means you will have an opportunity to inspect the property but the seller or bank will not make repairs to the house. You are buying it without warrantee's and you are responsible for any repairs.
Unless it is a cash deal offers are made contingent on financing. You outline the financing requirements in the offer. Obviously, the less financing you need, the stronger the offer.
You need to show the bank that owns the property that you are qualified to go through with the deal. A letter showing that you are pre-qualified for a mortgage generally accompanies the offer. If it is a cash deal, a letter from your bank will be acceptable.
Part Two of Repossessed Homes for Sale is continued on the next page with Bank Owned Homes.
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