Tampa & St. Petersburg FL Foreclosures,
REOs, Short Sales & Bank-Owned Properties
There are two types of Tampa FL real estate listings that go beyond that of the conventional buyer and seller. Although each one is different, they both have one thing in common – they equal great savings on your next home purchase. So let’s examine each one individually…
Short Sales (in Foreclosure)
When troubled homeowners want to prevent foreclosure and avoid the penalties that go along with it, they often turn to the “short sale” to achieve this. Essentially, if the homeowners can show evidence of economic hardship, have little to no equity in the home, and are falling behind in payments, the mortgage lender agrees to accept a payoff for less than the loan balance. Why would a bank do this? In the bank’s view, something is better than nothing. When a foreclosed home sits vacant and unsold, it costs the bank money. And banks are in the business of making money, which leads us to bank-owned properties or real estate owned properties known as REO.
Bank-Owned (Foreclosed or REO)
After a foreclosure is finished, the banks take back the property, which is then referred to as “bank-owned” or known as an REO or a "Real Estate Owned" property. Although an REO is an asset to the bank, it’s one that they don’t want, for in reality it’s a liability to them since their business is financing and not real estate. The money they would otherwise lend out is tied to the property. This is why many banks have gone out of business. It’s that fact that greatly benefits buyers. Home purchasers can often see savings of 10-50% off market prices on bank-owned property. Plus, buyers might find other perks, like easier price negotiation, buying a property that’s free of liens and back taxes, or even additional credits for closing costs and repair allowances.
Which Is Best? Short Sales or Bank-Owned Properties?
All of these options usually come in "as-is" condition, which means you have no recourse if there’s a problem. But you can have a home inspection prior to purchase to determine what types of repairs, if any, are needed. This is something you can rarely do with an auctioned home, where you do a walk-through the day of the auction and then place your bid.
A home is an investment for a majority of people, so it’s important to do your research on the property. Also remember the old adage – if a price seems too good to be true, then it probably is. Yes, you can save money on these types of listings; however, as for which one is best, the truth is that each has its own advantages and disadvantages.
As an experienced Tampa and St. Petersburg REALTOR®, I’ll be happy to show you current market sales so that you’ll know whether or not the property you’re interested in is truly a good deal. Plus, I’ll be glad to show you other bank-owned properties to help you construct an offer that benefits you while looking attractive to the lenders. So if you’ve considered purchasing alternative property listings like a foreclosure, short sale or bank-owned property, contact me today.