Tampa Bay Foreclosure Homes    

Tampa Florida - Everywhere you look in the Tampa Bay Real Estate market there are signs about "bank owned" homes, and "foreclosed" homes.  What's the big deal?  Aren't these houses in a bad part of town, and in really awful condition?  What does "bank owned" or "foreclosed" even mean in Tampa Bay today?

Well, bank owned and foreclosed mean essentially the same thing: the person who last bought the home and financed it with a mortgage for whatever reason was unable to make the payments.  It may be that they simply bought more house than they could realistically afford, selected a loan program that led to payments they were unable to make, suffered a set back in their career, some combination of the above, or for some other reason simply could no longer make the payments.  When the payments stopped flowing to the lender (the "bank"), the lender exercised their right to foreclose, or take, the house away from the person who used the lender's money to buy it.  It's a sad outcome to an unfortunate situation. 

Does this mean the Tampa Bay homes are in rough shape or in bad neighborhoods?  No, not at all.  While some of the homes that have been foreclosed on and are now bank owned may need some work, in most cases it is cosmetic in nature- nothing that a good cleaning and a coat of paint could not fix.  In some cases the homes may need a bit more work than that, and the bank lowers the price of the home accordingly.  These homes are in virtually all Tampa Bay neighborhoods right now- from poor neighborhoods up to high-end luxury areas.

So again the question:  what's all the hype about buying a foreclosed or bank owned home? 

It's simple- they are for sale at a fraction of their true worth. 

Banks are in the business of loaning money.  Period.  They do not wish to own these Tampa Bay homes, and look at owning homes as a risk they are unable and unwilling to bear.  The home could burn down.  Vandals could damage it while it sits empty (even in nice neighborhoods).  Someone could become injured on the property exposing the bank to a lawsuit.  The list goes on.  The last thing the bank wants to do is kick someone out of their home when they cannot make the payments because the bank now absorbs all these risks they do not want.

So what do they do?  They offer these Tampa Bay homes for sale at low prices to get rid of them as quickly as they can.  In most cases, they would rather take a small loss to sell the house quickly than hold onto it for months waiting for a full-value sale.

Why Tampa Bay Foreclosures Equals Opportunity for Home Buyers

That is why buying a bank owned/foreclosed home is such a good opportunity for you. 

If you are considering buying your first home, you can buy a larger home in a great neighborhood than what you could get a small home for just a few years ago.  If you are considering buying a larger home than your current home for your growing family, you may be able to do so without substantially increasing your monthly housing payment.

Like a "going out of business" sale, or even sales the day after Thanksgiving or Christmas, the time to act is right now.  These Tampa Bay real estate deals will not last long, the homes will be snapped up by savvy buyers who recognize a great opportunity when they see it, and housing prices will once again move up. 

Don't be left behind!

Author: Dave Presnell, Consultant specializing in Tampa Mortgages and Home Loans