Have You Considered Investing in a Florida Forclosed or Bank Owned Property?
There are some very important aspects to think about when you are considering an investment in a foreclosure property or a property that is REO (real estate owned). The basic principal behind foreclosure is the property has repossessed by the lien holder. When a property is in foreclosure it will often be sold at auction to the highest bidder. Since the starting price is set be the lien holder, many auctions end without any bids.
In the event of an unsuccessful auction, the property goes back to the lien holder, and is known as REO(real estate owned) property. After taking ownership of the property the lien holder will pay off any taxes, association fees, and perform repairs required. Once the property meets all the requirements it is listed on the real estate market at a lower price than market value.
So where can you find these real estate owned properties? They are mainly published online, in newsletters, and real estate magazines. In many cases contacting a realtor experienced with these properties is a good idea. A realtor can also provide you many details about the market value and provide you with a report of current listings, pending and sold properties within the community of interest.
Now you are probably asking what this has to do with Florida? In short Florida is a very lucrative state to invest in real estate owned properties. There is two major programs in Florida that can help investors spend less money.
The first is the Florida Energy Rebate which offers a rebate and loan program for energy efficiency offered by power companies. Information is available from Energy Star, American society of heating, refrigeration & air-conditioning engineers, and Florida Energy & Climate Commission.
The second is the FHA Rehabilitation mortgage, or 203(k) mortgage program. This program helps home buyers buy a home and have enough money to repair or rehabilitate it.
More important than the two programs above is the fact that banks are selling these properties for only 40% to 70% of the market value. As an investor interested in purchasing a bank owned property you will be allowed to preview the property to make a detailed property inspection before purchasing it. The banks that own these properties have to invest a great deal of time and money in to selling these properties. It may not be a good deal for the banks but it is a great deal to potential investors!
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In the event of an unsuccessful auction, the property goes back to the lien holder, and is known as REO(real estate owned) property. After taking ownership of the property the lien holder will pay off any taxes, association fees, and perform repairs required. Once the property meets all the requirements it is listed on the real estate market at a lower price than market value.
So where can you find these real estate owned properties? They are mainly published online, in newsletters, and real estate magazines. In many cases contacting a realtor experienced with these properties is a good idea. A realtor can also provide you many details about the market value and provide you with a report of current listings, pending and sold properties within the community of interest.
Now you are probably asking what this has to do with Florida? In short Florida is a very lucrative state to invest in real estate owned properties. There is two major programs in Florida that can help investors spend less money.
The first is the Florida Energy Rebate which offers a rebate and loan program for energy efficiency offered by power companies. Information is available from Energy Star, American society of heating, refrigeration & air-conditioning engineers, and Florida Energy & Climate Commission.
The second is the FHA Rehabilitation mortgage, or 203(k) mortgage program. This program helps home buyers buy a home and have enough money to repair or rehabilitate it.
More important than the two programs above is the fact that banks are selling these properties for only 40% to 70% of the market value. As an investor interested in purchasing a bank owned property you will be allowed to preview the property to make a detailed property inspection before purchasing it. The banks that own these properties have to invest a great deal of time and money in to selling these properties. It may not be a good deal for the banks but it is a great deal to potential investors!
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