Orlando, FL · Member since 2014 · 5 posts · 1 vote
I just got my interest peaked in my crazy online search for and affordable real estate investment but haven't the slightest clue as to if I should even begin to peruse just for informational purposes or actually roll up my sleeves and go for it. I may possibly be on to something, or I may be on to something I shouldn't bother with.
House for sale for quite a bit less than County Appraiser value. Owner filing bankruptcy, one loan found on home. Lis Pendens already noticed.
Should a foreclosure agent be contacted for further info? What do I specifically seek to know wether or not I should even attempt to get this into contract?
Any insight or advice would be appreciated and would like to hear what you with more knowledge in this matter would do,
If by "house for sale" you mean saw listed on Zillow.com, check to see if it is actually for sale. Zillow shows homes with lis pendens as "coming soon" which means nothing. If you see it on Realtor.com and it is actually listed by an agent, then it is likely a short sale. There are no guarantees if your short sale offer will go through but it is worth a try. Distressed properties used to be a dime-a-dozen in Florida, now they are drying up. Once it goes through foreclosure, the judgment value is likely to be higher than the price the property is worth and it will end up going to the bank. Then they will list it (some long time later) as an REO. Foreclosures that are actually a good deal are rare and you can easily get burned if you don't know what you are doing. So I guess you need to be clearer about what you mean by "house for sale". Also note that Zillow, Truila and others all have a lot of "stale" data so you could be looking at nothing. Only real way to tell is to talk with an agent and look it up in the MLS.
Also, the tax appraised value is meaningless. Any good agent can do a CMA (comparative market analysis) to tell you what the property is worth. So find yourself a good agent, preferably one that knows about residential investing.
Wow! Totally appreciate the reply. I am just learning to utilize this site in hopes of what you just confirmed. Thank you very much.
I will contact an agent and inquire. The comps aren't that great but, I am looking to start a Portfolio? with a long term hold investment,(Rental) I did come upon this in Zillow of course, " Amatuer" lol, but do cross reference whatever I see with many other sources which probably are just variations of same.
So, if this is really currently available, without actually putting an agent on the clock, can I get a better Idea of the status of this property by a phone call? Or is through an chosen agent the most reliable link to the actual situation. And just to understand a little better, is the judgment proposed by the county property appraiser? and does this property then go into auction before being listed?
Sorry for such elementary questions, for I am far behind the class and sincerely appreciate your response and time.
If it is MLS listed, my suggestion would be find a good agent in your area, and have him/her represent you in this matter - this puts a specialist on you side. For a listed property, this should not cost you anything.
@Taylor Vallies it sounds like the property of interest has not been foreclosed upon yet so it would not have an REO agent handling the property. A search for the address on Realtor.com would tell you if the property is listed for sale with an agent. If it isn't currently listed for sale with an agent your next step is to contact the seller directly. Doorknock, phone call, direct mail. In the event that you do find the property listed for sale you should have your buyers agent find out about the property situation and provide comparable sales. Your agent can also make arrangements to show the property and write your offer.
If buying for investment purchase Andrew is correct. You will want to work with an agent who understands investor's needs.
Lastly, with foreclosure there may be additional debts on the property. If dealing directly with the homeowner make sure you check for judgement, liens, and unpaid HOA. If there was recent renovation on the property ask the owner if they paid all contractors and get copies of the lien waivers/paid invoices. Lastly, while the homeowner is in bankruptcy they cannot sell the property. Only the bankruptcy trustee can sell the property or have it released for sale. Make sure the bankruptcy is discharged or the sale is approved by the trustee. Reaffirm your contract with the seller once the bankruptcy has been discharged.