Destin Foreclosures-Niceville Foreclosures

Buying bank owned properties on the Emerald Coast

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There is a lot of interest in buying bank-owned (REO) properties in Destin and Niceville these days. A lot of information, some good and some bad, is floating around about the subject. Often the information offered "at a price"--enrollment fee for information to be sent to you, with the promise that you can make a lot of money with little effort once you know “the secret formula”. The fact is that there are no secrets--no easy pot of gold, and making money does require effort. Contact me at 850-305-6256 or MykeSaysSold@aol.com--send me a note and I will send you the most up to date foreclosure properties today, and keep you informed as new possibilities come on the market the day they come on the market--so YOU can get the best deal--no committment and it doesn't cost you anything--most sites charge you to send lists that are inaccurate--all I need is a name and email address.

What is a short sale?

There are many short sale properties in Destin, Crestview, and Santa Rosa Beach at this time, especially in the condominium market. A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt. This can be a rather lengthy process--a contract is made between the buyer and the seller, and then the agreed upon terms are submitted to the seller's lender for their approval. This approval is what takes the time. There are many negotiations that occur during this time between numerous parties, such as the holder of the first and, quite possibly, second mortgage, as many homes were purchased with 100% financing (80% first, 20% second). All liens have to be cleared in order to release a clear title to the new buyer.

What’s an REO?

REO stands for “Real Estate Owned”. These are properties that have gone through the foreclosure sale or at the courthouse or are taken "deed in lieu" and are now owned by the bank or mortgage company. This is not the same as a property up for foreclosure auction. Foreclosure auctions take place at the courthouses in Shalimar and Crestiview, Florida.

When buying a property during a foreclosure auction (was at the courthouse, now occurs online), you may be required to pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. On top of all that, you’ll receive the property 100% “as is”. That could include existing liens and even current occupants that need to be evicted.

An REO, by contrast, is a much “cleaner” and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Do be aware that REO’s may be exempt from normal disclosure requirements such as the seller's disclosure statement document that normally requires sellers to tell you about any defects they are aware of.

Is it a bargain?

It’s commonly assumed that any REO must be a bargain and an opportunity for easy money. This simply isn’t true. You have to be very careful about buying a REO if your intent is to make money off of it. While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it. When considering the value of a REO, look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying foreclosures. But there are also many REO’s that are not good buys and not likely to turn a profit. I can assist you in this important process.

Ready to make an offer?

Typically the REO department at a bank will use a listing agent to get their REO properties listed on the local MLS. Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender. After you’ve made your offer, you can expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. I can assist you in this to make an educated choice in which foreclosed properties in Destin and Niceville would be the best buy!! Beach properties in Destin neighborhoods such as Sandestin, Emerald Bay, Emerald Lakes, Crystal Beach are highly desirable.