foreclosures in Florida

Wilma and Katrina 2005. Broward County still had pockets of people on FEMA relief from Katrina when Louisiana was all over it.

Read Florida Gardening Magazine. And if you are in the southern half of the state, visit the ECHO Model Farm in North Fort Myers to learn about tropical gardening. And DON'T throw away your winter clothes!

Not really my area of expertise but isn't an REO a property that didn't even get the minimum bid at foreclosure? Meaning that if you want to buy it they may let it go for less than what the minimum bid was at the auction?

We have a similar situation here in Nac. Historic hotel went to three auctions. Third, second and first lien auctions. IIRC the third lien auction was 800k and the first lien auction was over 2 mill. Now as I understand it they would sell it for what the third lien auction was if it is cash.

6 story hotel valued at about 4 mill for a mere 800k. At least that's what the paper is saying.

So technically it wasn't REO before the auction since they were the first lienholders and not the second or third. They controlled the asset I know but they had to go through three auctions to own it free and clear. Now that it is a free and clear REO they cant unload it seems.

Yes I remember Wilma. I was in west Palm Beach doing blue tarp for FEMA.

Never dropped below 50 IIRC all winter. Or not long if it did.

Yes, by definition a bank REO didn't take a minimum bid at the foreclosure auction. But that can happen for a number of reasons. The bank may have set the starting bid too high for investors to have interest, and in that case it may sell for less than minimum bid. But that usually doesn't happen.

Selling a bank REO is a different game from the foreclosure auction. When the bank sells the property it's shown like any other property on the market. Prospective buyers can enter the home and even have the property inspected. REO properties are also promoted by realtors.

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yes, and exactly what happened with the home I purchased last year. To buy it at auction would have been about $180K. If I understand the system correctly, the bank won't let it go at auction for less than what they are owed, or at least they wouldn't years ago. Might have changed since the bubble burst.

After the bank sat on it for 5 years, they let it go for $80K AND they paid my RE taxes for the next year. So that was another $2K the bank saved me. I had wanted to close prior to Dec 31 in order to own the home on Jan 1 and qualify for the homesteaders tax savings in FL. The bank needed another few days to put the paperwork together and in exchange, closed on Jan 3 and paid the entire year's taxes. In all but one of the other RE deals I've done, the taxes were prorated.

Yep, Marianna (or 25 minutes SW) was were I found the 500 acres I liked so much but my DW found too remote. Talla is an hour east, so for some folks, not all that bad. But DW wanted to have girl scouts and after school groups on the farm and with a population of only 14K in the county and no nearby schools, there were too few kids to be found.

I don't fully understand it, but banks have been perfectly willing to take a bath for a lot of the money owed to get out from under some of the properties. I bought my home home for about $30K, while close to $157K was still outstanding on the loan. The bank took a bath for $127K.

https://dl.dropboxusercontent.com/u/22059150/deed.pdf

As I said, I don't fully understand it. You would think they would set the minimum bid high and then try to market the property as a REO for as much as possible.

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Well, learn something new everyday. So an REO can go higher than what's owed on it if it is desirable. If its not then it could go lower.

I know the problem with that hotel is asbestos. I know an investor that wanted to buy it on the first lien. Both wanted to remodel it until I mentioned the abatement costs and headaches. If someone wanted it for a hotel it is a good deal though. It was the highest end hotel we had here.

The Stardust was purchased & imploded to make way for a megaresort project called Echelon. But funding for Echelon fell through. The property has stood empty for years. We have more recent news of an Asian-themed megaresort.

http://www.vegasinc.com/business/gam...-strip-casino/

We'll see...

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The eye of Hurricane Katrina went directly over our house in Slidell. Perhaps that explains my own reluctance to want to live in hurricane country again.

FL does present a growing season that's enviable.

Best of luck in your new location!

Thanks for all the responses. We are looking at this area of Florida for my DH to bass fish and for my horses. So we are looking on the east side of the Ocala Forest. Near St Johns River, Lake George. Right now my horses have 5 acres of pasture (snow covered since Nov.) I have a large bank barn. I want to escape the cold and have a smaller barn -way too much maintenance.
DH has Lymphoma -in remission but the winter is awful for him.
It just seems like a strange housing market that really was my question I guess. I don't think I could throw a foreclosure into the mix right now. How does it effect the surrounding real estate ?

Health issues can certainly make certain climates more attractive. I've known a few others to head towards the southwest as well.

I am fortunate that I haven't had those kinds of issues too close at hand.

I hope you find just the right place for you and yours, a place where DH can be comfortable. That is important.

Blessings!

If you are looking down this direction (southern Putnam County, including Crescent City, which posts it is "Bass Capital of the World") then I can give you the name of the real estate agent who dragged us down this dirt road because she insisted we simply must see this house, which she thought perfect for us. Yes, here we are, and it has indeed been perfect for us. Just shoot me a PM.

The "strange housing market" is best explained by specific locations. Some properties are just better than others, and some roads have a better reputation locally than others.

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My wife and I are also interested in Florida as a possibility in the next few years, so I entered this thread to learn more. I had a good laugh when I saw your post, only because the acre of land our house is on is worth $60,000 and I consider it to be on the cheaper end of the rural town we live in. One of the reasons we want to move is that we can't find an actual farm in our price range. There is one on the other side of our town for sale. 75 acres and a 2500 sq ft house, plus a 12 stall horse barn... $1,375,000 is the price. Not in this lifetime

I had a coupla crews working Slidell/NOLA area too. They had it worse as they had to stay all the way in Gulfport at a friends house and drive In everyday. Funny thing was a friend told me not to buy gas until I got down there. It was WAAAYYY cheaper. So like a dummy I listened and got to NOLA on 1/4 of a tank pulling an RV and yes the signs said it was cheaper by a long shot but none of them were open. (duh) I pulled into the Flying J right before Gulfport Fumes but I did make it. It was my first disaster contract so I got a lesson real quick. First thing I bought besides breakfast the next day was a 100 gal diesel tank for my truck.

For any who may be a bit confused?

An REO stands for Real Estate Owned. This is a property that has gone through Foreclosure and is currently owned by the Lender. Usually, they are offered at Auction, but these are the ones which aren't sold. REO's are often in terrible condition, but this isn't always the case.

When homes are Foreclosed upon, they are usually offered at auction (Courthouse). There are exceptions to this, as well. I have attended an Auction (via an Auction Service). The Lender will sometimes hire Auctioneers.

Homes going through Foreclosure, are sold as Short Sales (that means the Sales Price doesn't cover the pay off of the Mortgage). Often, these homes are in good condition, but this isn't always the case. The risk there? The Lender may not approve the sale. They also can take a long time to close. I have been a Realtor representing Sellers, Buyers, and also negotiated directly with the Lender.

Depending upon the market, it is usually better to purchase a home which isn't a Short Sale or an REO. If a Buyers Market, you can get a better deal on Short Sales and REO's. Sellers Market? Typically not.

I figured I'd add a true story:

I am representing Buyers, who made an offer on an REO. When I saw it, I was rather horrified. There was black mold, roof was toast, evidence of water damage, etc... In fact, it was in tear-down condition. They wanted it?! So, I wrote up their offer. The day of reckoning...the Home Inspection and Mold Inspection. The two Inspectors estimated up to $100K in repairs. I called the Buyers immediately (they were now back at home, out of State). They opted to rescind. I couldn't believe they even made an Offer on the home. Earlier today, I was speaking with one of them. She said they would buy the home if the Lender would cut the price in half. Are you kidding me?! I very gently recommended they start reconsidering their price range to include homes in relatively good condition. The best deals here are REO's in terrible shape!

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http://www.irealtyvirtualbrokers.com...lori-christie/
http://luxurywaterviewhomes.com/
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That's what I thought too.

I too am looking in Florida!

Collier and southern Lee counties (South of Fort Meyers, North of Naples)

I'm gonna go down and rent for a while; then look to buy.
I am blessed with an agent that I have known for a long time...so I have given him what I am looking for in a rental and he is on the hunt!!

Any advice is appreciated!

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Interesting!

Let me ask, how would a person negotiate effectively to purchase an REO in terrible shape?

Would you basically be approaching the bank with a few comparables in "good shape", an inspection report, an estimate of what it would take to put the property into good shape, (a little wiggle room for unseen / unanticipated additional issues) and after all that is subtracted out, that's your offer to the bank? I can see that as sort of a paper trail that the bank would have trouble arguing with when it comes to actual value. (?)

Or is there another way that you get banks to let go of their REO inventory?

There is an REO property in this area that I'd love to own. I think numerous others would like to own it, too. But somehow, the bank has this idea it's worth way more than it is. It's been for sale, way overpriced, for years. It's been through various auctions that never reach the minimum bid. And there it sits. It's probably worth $125k and they want $250k. Nobody's gonna pay it. It's not worth it. And the house is deteriorating, some through vandalism. It's a sad thing to watch.

Curious on your thoughts!