Valerie Ostrom :: Ocala Florida Realtor® :: Real Estate Buyer Agent and Seller Agent

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Ocala Marion County Florida Real Estate Listings :: Ocala Florida Homes For Sale

Ocala Short Sales and Foreclosures

We are beginning to see more Short Sales and bank owned properties coming on the market here in Ocala.

First let’s understand the difference between a Short Sale and a Bank Foreclosure.

A Short Sale is actually a pre-foreclosure where the seller, who can not longer make his mortgage payments and owes more on the property than it’s worth, contacts the bank and the bank agrees to accept a lower payoff on the mortgage than the seller owes. Banks do this under the idea that they are going to lose money anyway and it might be cheaper to accept a lower pay off than go through the legal process of foreclosing and then have to sell the house.

A foreclosure is when the bank has already taken title to the property after the legal process of a foreclosure.

Although you might think this is a great way to buy a house for cheap, there are a lot of potential pit falls.

  • Short Sales aren’t always the best deal. There are often homes just as well priced without the hassle or risk.
  • When you make an offer, the bank may sit on it for a month or more while looking for better offers or just due to bureaucracy. You can’t be in a hurry to move because you just closed on a house you just sold and need a place to live.
  • Even after accepting the offer, the bank can change it’s mind and start foreclosure and you can lose money spent on an inspection or survey.
  • Short Sales and bank sales are sold “As Is”. You will have the right to do an inspection but the bank won’t make any repairs.
  • Foreclosures may have sat vacant without any maintenance for a long period of time and are sold “As Is”.
  • In a normal sale, here in Ocala, it is traditional for the seller to pay for title insurance. Banks often try to shift this cost to the buyer.
  • Banks are hard to deal with because they don’t play by the same rules as a private seller. This is accomplished by adding clauses to the sales contract.

Before getting involved in one of these bank sales you should find a Realtor and look for an equally good deal from a private seller. If you want to pursue this method of buying a home any way, be prepared for a lot of hard work and frustration.

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