Tampa Bank Foreclosures: Deal or No Deal?
Occasionally I get calls from consumers looking for a foreclosed property, so I ask a few questions. The one thing that most buyers think is that somehow this “Bank Owned Property” will be a real deal for them…ahhhh, maybe not.
Consumers also think that whatever money was owed on the property to the bank is all the bank will want to recoup…wrong again.
So what is a Tampa Bank Foreclosure?
It is a property that the bank held the loan on that the homeowner did not pay…so the bank did a “REPO” and took the property back. It now belongs to the bank and they are going to re-sell it…for a profit.
Banks do not price their properties ”well below market value” and they are not desperate to “give anything away”. Unless of course it is in a poor location, heavily distressed and they cannot snag a buyer for it.
Here are the top things that a foreclosure buyer can be sure of…really sure of:
- Bank will try to get the highest price and most favorable terms…for them.
- The property will be in some kind of disrepair. Owners that cannot afford to pay their mortgage, do not fix house problems.
- Banks do not do any “serious” repairs…sure they may slap a coat of paint on and install new carpet and call it a day…it is almost unheard of for them to replace the A/C, the roof, or rewire or re plumb the house. Look past the “pretty” stuff to see the real house.
- What was owed on the property is irrelevant to how much money the bank now wants…banks are only in the business to make money for themselves.
- After the bank negotiates your offer you will then receive addendums that may reverse whatever was in the contract. This new addendum will favor only the bank…never you.
- You cannot guess what the bank will take…so please put your formula and calculator away.
If you are looking to buy a good deal, then consider all the properties that fit your criteria.
Don’t get caught up in the “foreclosure” buzzword.
Sometimes a regular sale, from a regular seller is in better condition, and at a lower price than the Bank Foreclosure.
For straight talk on all your questions, call us.
Buyers Broker of Florida