Since I got into Real Estate, the buzz word for home buyers has always been, “I want to buy a foreclosure.”

What do they mean here in Kissimmee/Saint Cloud, Florida? Do they want to go to the court house during a Real Estate auction? Well, if that’s thecase, they have to have a bank check and settle up by 3:00pm. This isn’t what they had in mind I imagine. Most buyers can not respond that fast.

Do they want to buy a home in Pre-foreclosure? If that’s the case, are they willing to wait the time to get the banks approval. A short sale can take up to 10 weeks for approval.

Do they want to buy bank owned property? These are what’s referred to as REO’s. These are properties that the lender has bought back at the auction. At the auction’s at the court house, Lenders are buying many properties back to try and keep their losses to a minimum. They understand that there are investors that try and price fix auctioned homes, to maximise their profits.You rarely see investors bidding against the deep pockets of a lender. So they buy it back with the minimum bid. Here in Osceola County Florida, that’s $100.

The safest way to get involved in “Foreclosure” purchasing is through REO properties. The approval is usually just two weeks and then a regular purchase takes place. These properties are “as Is” and the sellers do not contribute towards closing costs. When making an offer, have your financing in line. This will help the decision of the lender that they are comfortable with the deal. These properties are sold under what you could have purchased them for in the short sale process. It’s bank owned inventory that needs to be liquidated.

The Resident Mark

www.ResidentTeam.com