Naples Bank Foreclosures
In the past year, foreclosures in Naples Florida accounted for 11% of all homes sold. This is down from of peak, of when foreclosures represented 30% of home sales in 2009. Currently bank foreclosures represents just 3% of Naples available homes for sale.
While the number of available foreclosures for sale has been decreasing, they are decreasing at a slower than Naples Short Sales. Foreclosing on a home is a much more involved process than a short sale. For most foreclosures there is no owner cooperation, for short sales their is owner cooperation
Ironically, foreclosures sell so quickly in Naples, that the Naples foreclosure market would normally be defined as “super heated.” Usually there are more foreclosed homes under a purchase agreement waiting to close, than what is listed for sale. Any lender with a foreclosed home in Naples, will rush to get it listed in the MLS. Because they sell fast.
Contrary to conventional beliefs in other parts of the country, there is no second wave of foreclosures coming for the Naples area.
Naples Foreclosed Home Basics
Foreclosed home in Naples do not sit around. If a second home buyer is interested in a Naples foreclosure, then at any time there will be a very short list of available properties or none at all.
- Naples foreclosures are listed in the MLS. There is no secret list of foreclosures, and any lender with a foreclosed property in Naples, will want to get it in the MLS as soon as possible. Bank owner real estate, know as real estate owned (REO) is a non-earning assets, which banks want to turn back into a cash assest as soon as possible.
- Foreclosed homes are sold AS IS with the right to inspect. Some Naples Foreclosures are in rough shape. Others are close to move-in condition. Most will need some work.
- If a Naples foreclosure does not sell immediately, the price will gradually be reduced over time until it sells. The most undesirable properties, eventually go to auction.
- List prices can be negotiated, but 50% of Naples foreclosed homes sell at or above list price. It is very common for foreclosures to receive multiple offers. In which case the bank will ask for “Final and Best” offer from all interested parties.
- A buyer with a cash offer, will have to show proof of funds (bank statement, letter from banker, etc.) are available to close.
- If a mortgage is involved, there is often a requirement that you have to work with the bank’s lending group prior to making an offer.
- The bank will require multiple addendums to the Naples area standard purchase agreement, or replace it all together.