Tricks & Traps of Foreclosures - Buyer Beware!

 Considering buying a foreclosure? Here are some tips that may help. When dealing with a bank for an REO (Real Estate Owned) property expect tricks & traps at every junction. Here are just a few that you'll want be aware of.

- "AS IS WHERE IS" - Banks sell properties in a strictly as is condition. If you look at a foreclosure and it needs substantial work to make it livable, don't expect that the bank will make these repairs prior to closing. Anything short of an environmental or health hazard will ultimately be the buyers responsibility. Make sure your inspections are thorough even if it costs a bit more initially.

- "Real Estate Disclosures" - There aren't any! The bank has never seen or lived in the property and has zero knowledge of the history, prior or existing defects, or the surrounding areas. typically a Sellers Disclosure is obtained by a buyer prior to submitting an offer. Don't expect any from a bank.

- "Contract Terms" will change - Your initial offer may be accepted verbally however, soon thereafter you will receive a whole new set of documents & addendum's to review and sign ASAP if you expect the contract to move forward. You'll find that many of the terms, times and conditions are very different than what you thought was accepted. The only thing that is accepted is "price". All other conditions will be incorporated in the bank or investors contract. Take it or leave it.

- "Escrow Deposit"- You will likely be required to work with the banks chosen escrow and Title Insurance company. They will rush you for your deposits and afterward take their time on processing the required signatures and meeting deadlines. Typically they are slow and unorganized "Foreclosure Mills".



Have realistic expectations. Work with a Broker who is familiar with the process and potential complications. Call 561-306-6736 or email directly with any questions about buying a foreclosure.

Condos for Less Than the Cost of a New Car

With so many condos in South Florida available for less than the cost of an average priced new car it's no wonder I've been running my tail off this summer. Buyers with cash are taking full advantage of the overwhelming wealth of inventory now glutting the market. In many cases buyers are looking for deals on several at a time hoping to grab up a couple and make some extra cash monthly. Holding them a few years or more until the market stabilizes is not difficult since the rental market for inexpensive homes and condos is strong.

Cash is king in these instances. In many cases lower real estate values and stricter financing regulations make it difficult to obtain any financing on these condos. That together with the fact that foreclosure sales are often awarded to cash buyers with no financing contingencies. Some savvy buyers are building up a small inventory of real estate that may in fact become their financial salvation in the future. Others are just looking for ways to live inexpensively while maintaining ownership interest in property.

International buyers seem much more eager than domestics to snap some of these properties up. Seeing the advantages of having a place of their own when visiting the area and not being as affected by the economies in their countries they are taking full advantage of opportunities and benefitting from the seemingly unending depression of the American real estate market, particularly the one here in South Florida. Opportunities continue to pour into the marketplace. The tremendous backlog of foreclosures still being accumulated should allow this market trend to continue for some time to come.

If you or anyone that you know is considering buying or selling a property in Southeast Florida please contact me directly at 561-306-6736 or by email ges.rellc@ymail.com or rebuygeorge@yahoo.com