Here are some helpful tips about bank-owned homes and REO from experts in bank-owned home sales.
With so many renters getting ignored by their hedge fund landlords it would be wise for them to start know their rights as a tenant. As a landlord of over 18 years I can tell you that most states have very strict guidelines of what a landlord can and cannot do. If the landlord keeps crossing this line they are going to pay a hefty price. If you know anyone who is going to be renting a home they need to read below.
Here's What Happens When Wall Street Builds A Rental Empire
“There's no escaping the stench of raw sewage in Mindy Culpepper's Atlanta-area rental home. The odor greets her before she turns into her driveway each evening as she returns from work. It's there when she prepares dinner, and only diminishes when she and her husband hunker down in their bedroom, where they now eat their meals.
For the $1,225 a month she pays for the three-bedroom house in the quiet suburb of Lilburn, Culpepper thinks it isn't too much to expect that her landlord, Colony American Homes, make the necessary plumbing repairs to eliminate the smell. But her complaints have gone unanswered, she said. Short of buying a plane ticket to visit the company's office in Scottsdale, Ariz., she is out of ideas.
Most rental houses in the U.S. are owned by individuals, or small, local businesses. Culpepper's landlord is part of a new breed: a Wall Street-backed investment company with billions of dollars at its disposal. Over the past two years, Colony American and its two biggest competitors, Invitation Homes and American Homes 4 Rent, have spent more than $12 billion buying and renovating at least 75,000 homes in order to rent them out.”
Good video on hedge funds buying up homes in Atlanta, GA
Renters need to understand how is renting the home to them and by all means get familiar with your rights as a tenant in the state you live in.
If you have any questions about real estate in Tampa Bay please get in touch with me by going to my website Tampa2Enjoy.
Where have the bargain bank-owned properties in Tampa Bay gone? Prospective homebuyers who have put off taking advantage of the significant savings on foreclosed homes now owned by the bank are starting to ask that question. The hot tip for several years is seek out a foreclosure for an excellent bargain. The low prices were a result of the banks trying to unload millions of dollars of worthless debt from their books. Zillow recently announced the results of a study showing numbers for mid to late 2012, demonstrating the decline of savings in foreclosure purchases across the nation.
Bank owned properties in Tampa sold for nine percent less than comparable non-REO sales in September 2012. The discounted price slipped just .5 in twelve months, but represented a twenty-nine percent change from discounts of November 2008. The current Orlando REO discount of 4.6 percent is higher than the two percent discount in September 2011, but far less than the 24.4 percent discount during the first month of 2010.
The Miami-Fort Lauderdale area painted an equally dismal picture:
- Current REO average savings 2.9 percent.
- Decline of nearly 7 percent in September 2011.
- Overall drop from the August 2008 peak of 22.7 percent.
The trend is similar on a national level:
- Metro area foreclosure discounts are down approximately 77 percent.
- Some metro areas peaked at over 30 percent in 2008/2009.
- All metro areas show declined discounts.
The national September 2012 REO discount average was 7.7 percent, a drop of 1.4 percent over the past 12 months. The higher the demand is for homes in a certain area, the less foreclosure discount is offered. Two cities with high housing demand, Las Vegas and Phoenix, offer no discount on foreclosure re-sales, but successfully market those homes due to the limited number of homes available for purchase
If you are looking for bank owned homes in Tampa in order to take advantage of the lower prices, there are several things to know before undertaking that endeavor. Two important items should be done right away. First, locate a professional Realtor, as someone with experience in this type of action will help you navigate through the process. Second, secure funding in advance through a conventional loan, a Proof of Funds letter from a lender, or a personal bank account with a balance large enough to cover purchase and costs, if you anticipate paying cash.
With these two items in order, you are ready to begin your search for a nice home in a nice area, such as one of the beautiful homes in Wesley Chapel. You will find that homes are being sold for forty to eighty thousand dollars below market value, as the banks are not in the market to hold property, but rather want to see it occupied and their books cleared of the debt.
Gather information to help you make a decision, including property values and how long the home has been empty. Even if the home is everything you have always wanted and more, negotiating the price in the offer provides bargaining room with the bank. Your Realtor is invaluable with gathering the details needed for a successful purchase. Bank owned homes can provide more favorable negotiation room for the buyer than a traditional home purchase. The bank wins by recouping lost money on the loan; the buyer wins by closing a lucrative deal.
Keep in mind that bank owned homes in Tampa or any other location does not necessarily mean the buildings or property have been trashed or have less value. Unfortunate circumstances befall people from all walks of life, causing their plans to change even when it means giving up their home. Some homes may need repair, but you are just as apt to be shown one of the homes with showcase value. It all depends on what you are looking for in your position as a buyer.
Once you evaluate the information and secure funding , your Realtor will work towards a successful transaction. You could get an excellent deal on one of the amazing homes in Seven Oaks, where you have access to the various pools and other activities offered to residents. A Realtor is an invaluable asset before, during and after the purchase of a home in the Tampa area because of his or her expertise.
There are many advertisements for home auctions in the Tampa area. You may be wondering how this works and if you will actually get a better deal than a foreclosure home, short sale or a bank owned home. These types of homes have literally flooded the Tampa bay, Fla real estate market lately and are being sought after by investors and regular buyers. You must know that with these home auctions you are going to have some pretty stiff competition. There are also fewer auctions than the typical home selling avenues such as short sales and bank owned properties.
The other option is a Tampa Bay REO; which is a Real Estate Owned property. REO’s are owned by a lender, such as a bank. An unsuccessful sale at a foreclosure auction is the result. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank. The minimum bid in most foreclosure auctions equals the outstanding loan amount, the accrued interest and any costs associated with the foreclosure sale including attorneys’ fees.
After an unsuccessful auction, the bank will go through the process of trying to sell the property on its own. It will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a Realtor. Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real estate investors will often go after these properties as banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property.
In summary, either option you choose will get you closer to obtaining your investment goal. The outcome you want is to purchase a property for less than market value and hang on to it until it appreciates. At that point you can re-sell it if you wish, cashing in your investment, or you could simply keep it longer for a larger investment. Either way, if you do your homework you can’t go wrong.
Although Tampa foreclosures present a very real buying opportunity there is risk involved especially for those unfamiliar with the local market. Learn how to avoid potential pitfalls with these timely Tampa foreclosure facts and tips.
1. Title Troubles. The Internet is filled with methods on how to delay foreclosure due to title problems; while that may not interest you as a buyer, the basic fact remains – many mortgage companies failed to properly document transfers and other essential information when packing/reselling loans. The resulting delay is used as a tactic to delay foreclosure for those in financial trouble but Tampa home buyers and others in the market for foreclosures should take note; foreclosed real estate could potentially contain title problems.
Tip: When purchasing foreclosed Tampa real estate, be sure to obtain both forms of title insurance. One protects the mortgage company and the other protects you as the buyer. Insist upon a reputable title insurance company. It may save you time and trouble in the long run.
2. Tax Troubles. Here is a little known fact of interest to those in the Tampa foreclosure market; some state and federal tax liens may impact your property purchase – specifically Federal income tax liens. Federal tax liens take precedent over all other forms of debt. Should the current home owner have a tax lien then it will attach itself to the property. Often it is only found during the title search and may impinge or negate the purchase of the property for the following reasons:
• The mortgage holder takes second position to the Federal tax lien and no longer wishes to complete the transaction.
• The foreclosed real estate is used to secure the lien and therefore could encumber the property – obviously negating the final transaction.
• The tax lien attaches to all future real estate purchased or acquired by the taxpayer effectively rendering them a credit pariah until the debt is repaid in full.
3. Timing Troubles. Tampa Bay foreclosures / short salescan take time to purchase; everything from clearing the title to ridding the current occupants of the home can slow things down to a crawl. Worse, extended delays can create financing problems including loss of rate locks and other provisions. It is imperative to have an experienced real estate agent who has actually worked with local foreclosures to make sure the process stays on track.
If you are considering trying to find a way to save money on the purchase of residential real estate in the Tampa, you may want to follow the lead of some other individuals who have taken to purchasing distressed real estate. At the present point in time there are a number of different options available to people who are interested in saving money on their real estate purchases.
In addition, this article also provides you with basic information on how you can better avoid losses if you are the owner of real estate in a distressed situation.
Of course, as mentioned, the primary consideration is to identify a piece of real estate that is available for purchase because of some sort of distressed situation. Types of idyllic distressed situations that can bring a piece of real estate onto the market for a strikingly reasonable price. There situations involve real estate that are involved in:
- Bank Owned / REO
- Probate or Estate Cases
- Divorce cases
- Property in poor physical condition
There are other reasons for which a property can end up on the Tampa real estate market for distressed reasons. However, the reasons that have been highlighted here are the most common reasons why owners of Tampa real estate end up having to make a quicker sale of their properties for a lower than average cost.
Of course, when it comes to the decision to try and save money on the purchase of distressed real estate, you need to make certain that you seek out a situation that is most suitable to your needs, circumstances, resources and goals. For example, if you do not have the ability or the desire to rehab a property on your own, you likely will not want to purchase a property that is available for sale at a distressed price because it is more than likely to be in poor physical condition.
One resource that you will want to be sure to take advantage of when it comes to the purchase of distressed real estate is a professional Tampa Realtor. In this day and age, real estate agents involved in the Tampa real estate market are being called upon with a greater degree of regularity to assist people who need to quickly sell a residence for a distressed cost. Therefore, you can gain a great deal of authoritative assistance by making connections with these types of skilled professionals.
On the flip side, if you are the owner of real estate that you feel you need to get onto the market quickly to minimize your risk of additional loss, you will also want to consult with a professional Tampa real estate agent. A qualified and experienced Tampa real estate agent can work closely with you to assist you in developing a sales strategy that will minimize the losses that you might otherwise experience when you are facing a distressed situation in regard to your real estate.
If you have any questions about foreclosures in Tampa Bay or bank owned properties please don't hesitate to give me a call. Thank you for visiting our website and don’t forget to save my Tampa Real Estate Blog to your favorites section of your internet browser.