A Pensacola REO or Pensacola Beach REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. Most foreclosure auctions do not even result in bids.

Foreclosure sales in Pensacola and Pensacola Beach begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney’s fees and any costs association with the foreclosure process.

Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property “reverts” to the bank. It becomes an REO, or “real estate owned” property.

The Pensacola or Pensacola Beach bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.

A Pensacola REO or Pensacola Beach REO bank owned property might not be a great bargain. Contact a Gulf Coast Home Expert professional to assist you. Do your homework. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood.

BUYING A PENSACOLA FORECLOSURE

Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the Pensacola property securing the loan. The Pensacola foreclosure process begins when a borrower/owner defaults on loan payments and the lender files a public default notice. The foreclosure process can end one of four ways:

1. The borrower/owner pays off the default amount to reinstate the loan during a grace period known as pre-foreclosure.
2. The borrower/owner sells the property to a third party during pre-foreclosure, allowing the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.
3. A third party buys the property at a public auction at the end of the pre-foreclosure period.
4. The lender takes ownership of the property, usually with the intent to re-sell. The lender can take ownership through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction.

5 Steps to Buying a Pensacola Foreclosure

1. Find a Pensacola Foreclosure Property

Buying a home in foreclosure begins with research.  Research is done on the Pensacola Clerk of Circuit Court website. Decide the status of foreclosure for which you want to search.

• Select Pre-Foreclosure for Default Notices or Lis Pendens.
• Select Auction for Trustee Sales or Sheriff's Sales.
• Select Bank Owned or Government Owned for REOs (repossessions).

Property Details

Visit www.ParadiseFoundPensacolaBeach.com to search if any of the Pensacola Beach foreclosure properties are currently listed by real estate agents in the Pensacola.  

If you have questions about a specific property, contact a Gulf Coast Home Expert for a more extensive search for you on Pensacola Beach foreclosures through Gulf Coast Home Experts, LLC.

2. Get Financing

Obtaining financing not only gives you an estimate of what you can afford, it also enables you to move quickly once you locate a property that interests you. When you approach a borrower/owner or a foreclosing lender about a property, secured financing will demonstrate that you are a serious buyer and are ready to buy quickly.

3. Contact an Agent

If you're a first-time homebuyer and you've never purchased a home, let alone a Pensacola Beach foreclosure property, it is beneficial to contact a Pensacola Beach real estate agent who can guide you through the process of buying a foreclosure. If you work with an agent, make sure they know your priorities. Ask any potential agents if they have experience with Pensacola Beach foreclosures. Especially for first-time buyers, a good agent can be a comforting and helpful resource.

If you have questions contact Info@GulfCoastHomeExperts.com so we can direct you to Pensacola foreclosures.

4. Contact Owner

Depending on the property status, the seller will be the owner in default, the trustee or the foreclosing lender.

Contact Owner: Pre-Foreclosure (Short Sale)

When a Pensacola property is in pre-foreclosure, the owner still has a chance to stop the foreclosure process by paying off what is owed or by selling the property. The pre-foreclosure period can last several months, so you may need to be patient when trying to contact the owner in default.

The first step is to call the trustee or attorney listed on the Property Details page to confirm if the property is still in foreclosure. The trustee or attorney has the most up-to-date information if the owner has sold or reinstated the property. The trustee or attorney cannot answer other questions about the property.

If you haven’t done it already, you’ll want to evaluate the property’s value and check for any additional loans or liens encumbering the property so that you can make an informed decision about whether the property is a wise investment. If the trustee confirms the property is still in foreclosure, and you believe the property could be a wise investment, you should contact the owner in default as soon as possible.

Contact Trustee: Auctions

Before the auction, you may have a chance to work out a last-minute deal with the owner in default. Usually a property is scheduled for auction just a few weeks before the auction occurs, so you may have to move quickly if you want to contact the owner.

Auctions can be postponed or canceled anytime, so no matter what the auction date is. The trustee/attorney has the most up-to-date information if the auction has been canceled or postponed. The trustee/attorney cannot answer other questions about the property.  If you believe the property could be a wise investment, you can attend the auction to bid on the property.  

Contact Owner: Bank Owned

If the property is Pensacola Beach Bank Owned (REO), your first step is to contact the lender and check the Pensacola MLS to see if it is listed by a realtor.  You should contact the lender directly and ask for their REO or asset management department to find out how you can view and possibly make an offer on the property. REO means "Real Estate Owned" by the lender.

Contact Owner: Government Owned

Many government-owned properties are already listed with a real estate agent. If the listing agent's information is not available, you can contact Info@GulfCoastHomeExperts.com or you can try to contact the government agency listed directly.

5. Make an Offer

If you have never purchased a Pensacola foreclosure property before, contact a Gulf Coast Home Expert to help you write the contract.  Based on your research of the potential bargain, you can make an offer. Usually the offer amount is somewhere below the market value but above the total outstanding liens and estimated repair costs. If the property is a pre-foreclosure or bank owned, you could prepare an offer similar to a typical purchase offer, contingent on a full inspection and title search.

If the property is selling at auction, you will need to make your offer, or bid, at the auction. In many states, bidders are required to pay in cash in the form of a cashier’s check at the auction. You probably won’t be able to conduct a full inspection and title search when you buy at an auction, so it’s important to do careful research before attending an auction.

Buying a Pensacola foreclosure can be a great opportunity for a good investment on Santa Rosa Island.  Contact Info@GulfCoastHomeExperts.com for help with your Pensacola foreclosure offer through Gulf Coast Home Experts, LLC.