Florida Keys Foreclosure, Short Sale and REO Properties
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At the bottom of this page there is a list of 40 Upper Florida Keys foreclosures and short sales that were listed in the local MLS as of Sunday, July 26 th, 2015. Click on the picture or MLS# for a link to additional information and more pictures of the listing. Florida Keys foreclosed homes and Florida Keys short sales represent great opportunities for qualified and knowledgeable buyers to acquire real estate at below market value prices. For a view of the listings, including short sales and foreclosures, that we think are great buys, visit our Best Deals list of Researched and Recommended properties.
Buying REO (Real Estate Owned) Homes
Buying from a REO (real estate owned) lender program is carries less risk to the Buyer than obtaining title by out bidding the lender on the court house steps. Typically a REO home will come without liens or tenants, and include title insurance.
However, buying an REO home comes with some risk. Most of these foreclosed properties require work. Often they have been left unattended for a year or longer. Furniture, appliances and in some instances cabinets and attachments have been removed. Do not buy an REO or foreclosed home without a thorough inspection. Know the expenses you are going to incur before the property is ready to use or occupy.
In judicial foreclosure states such as Florida, lenders are required to sue the borrower and get a court order to foreclose on a property. This is a lengthy and costly procedure that will normally take at least 180 days, and in some instances well over a year. Because of this, there are many opportunities to buy a Florida Keys distressed property before it becomes a foreclosure. This is known as a short sale.
A short sale means that a seller’s lender, or in some cases two lenders, have agreed to take less than the existing mortgage in settlement of the Seller's obligations. A lender will agree to this if they believe a short sale will result in a smaller financial loss then going through the Florida foreclosure process.
With a short sale, first the seller, then the lender(s) must accept the offer. This can be a drawn out process. And although lenders have improved their systems, it is still common to wait several months before getting a response.
There are several factors that can influence this. Is there a second note on the property? Has the Seller already been approved for a short sale? How cooperative and prompt is the Seller in completing the Short Sale Application. Are there association issues? Has a price on the property already been considered by the short sale servicing company because of a previous offer. Be patient if you want to purchase a short sale property. If you can wait it out, you can get a good deal.
At the bottom of this page is a list of Upper Florida Keys foreclosed homes, short sales homes and REO homes to include Key Largo and Islamorada (Tavernier, Plantation Key, Upper Matecumbe and Lower Matecumbe). You will find some of these listings on our Researched and Recommended list. Please contact us if you would like additional information.
Foreclosures and Short Sales Continue to Decline
Overall in 2014, there were approximately 778 residential homes sold in the Upper Keys as reported in the local MLS. This was an increase of 9.0% over 2013. However, the number of distressed properties sold continued to decrease. Of these sales, only 12.6% (98) were Lender owned (REO) properties. An additional 4.6% (36) were Short Sales. In 2013 21.7% of residential sales in the Upper Florida Keys were either a Lender Owned property or a Short Sale. in 2014 these distressed sales were only 17.2% of total sales. Through the first five months of 2015, they represent 11.1% of total sales.
The Banks have become much more aggressive and are asking higher prices for their REO properties. It appears that their strategy is working as the mediaan sales price for an REO increased 11% in 2014. The average sales price for a non-distressed property increased 5.0%. Still, there are many Buyers who closely watch the foreclosure sales market in the Florida Keys, and the good deals usually receive multiple offers within the first 7 days and sell above the listing price. When considering making an offer on a Lender Owned property remember, if it looks like a great deal to you, it is looking like a great deal to someone else. Be realistic about the price you offer. It is unusual for a Lender to accept less than 95% of their asking price, even if you are the only offer.
Foreclosure and Short Sales Listing Data
The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of the Florida Keys Board of Realtors Florida Keys MLS, Inc. Real estate listings held by brokerage firms other than Glenn Hoover Real Estate Services South Florida, LLC are identified with the name of the listing brokers office.
Foreclosures and Short Sales For Sale in Upper Florida Keys
This list was updated 4:00 PM, Sunday, July 26th, 2015. At that time, there were 565 residential properties listed for sale in the Upper Florida Key's MLS (Key Largo and Islamorada). Only 40 or 7.1% of these properties were reported by the listing agents as foreclosures or short sales. 60.0% of these distressed properties were already under contract (Pending or Contingent), either waiting for final lender approval, a contingency to clear, or the closing date. The percentage of distressed properties available for sale has decreased dramatically over the last 3 years. We interpret this as another sign that the market is recovering. Lenders are also getting more aggressive, listing their properties higher. The best deals are not always foreclosures and short sales. We strongly recommend that potential Buyers look at the entire list of available properties.
If you would like to sign up to recieve the latest Florida Keys Foreclosures in your inbox each morning, complete the Daily foreclosure Email box in the right column of this page, or send a specific request from our signup page. If you would like to us to establish a search unique to you, give us your criteria on the contact page.