Ocean City MD foreclosures, Ocean City MD short sales, Ocean City MD REO properties, Ocean City MD bank owned properties, Ocean City MD distressed property … these various terms get thrown around interchangeably when one is looking for real estate in Ocean City, Maryland. While they all represent a type of distressed property, each one is very different and presents unique characteristics and scenarios. Some, such as Ocean City foreclosures, present great opportunities for value but come with a fair amount of risk. Others, such as Ocean City short sales, are an opportunity for a great value with a lot less risk and exposure, but require a lot of patience. We have broken down these various Ocean City MD real estate scenarios below to give you an overview as to what each one represents and what to look for when pursuing one.
Ocean City MD Foreclosures
Foreclosures are properties where the current owner has fallen behind on their mortgage and the bank holding that mortgage is taking the property back through the foreclosure process. Typically when a borrower is 30 days late on their mortgage payment the bank will notify them that they are beginning foreclosure proceedings. The current owner has the opportunity to bring the mortgage current in a specified time frame and in the event that they do not the property goes into foreclosure. There is a legal process that the bank must adhere to and then they can offer the property at a foreclosure sale, typically through an auction. These are the properties that you see listed in the backs of newspapers and sometimes advertised by the auction companies. Most of the properties never go through to auction as the bank typically buys them back and offers them for sale, at which time they become known as bank owned properties. For the properties that do make it through to auction, typically ones in very bad shape that have little value and the bank doesn’t want, the highest bidder at the auction gets the property. You are buying these properties typically sight unseen, “as is” in their current condition with no inspection provision and you are responsible for all of the fees associated with the purchase, including back taxes and home owners association fees. Buying Ocean City MD foreclosures at auction presents the most risk of all the distressed property scenarios.
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Ocean City MD Bank Owned Property
Bank owned real estate is property that the bank has carried through the foreclosure process and bought back at the foreclosure sale. Once they go through the legal process of getting it back into the banks name as the owner they then have the legal right to sell it however they want. The banks typically take these properties and list them with an Ocean City Realtor. These are the properties that you will see listed on this site through the Ocean City multiple listing service (Ocean City MLS) and on many other real estate websites listed as foreclosures. Purchasing these properties will move along much like a typical real estate transaction, except that you will be dealing with a bank as the Seller as opposed to the folks down the street. You will also be competing with a lot of potential Buyers as these properties are typically the best deals and the Ocean City MD real estate market does not see many of them. As I am writing this article there are 8 Ocean City MD bank owned property listings available out of approximately 1500 total listings. When the good bank owned listings become available savvy buyers that are well informed and kept up to date by their Ocean City Realtors jump on them immediately and they are typically under contract within a couple of days.
Buying bank owned property presents a lot less risk than buying Ocean City MD real estate through a foreclosure auction. These properties are still sold “as is” however you have the option to do a home inspection and back out of the contract if you are not satisfied with the results. In addition with bank owned property the banks typically bring the back taxes and home owners association fees current so that you start your ownership with a clean slate. Also with a Ocean City bank owned property that may be part of a home owners association you will have the opportunity to review the association’s documents and financials to ensure you are comfortable with the community or building, something you likely won’t get through a foreclosure sale. Ocean City MD bank owned property is the best avenue for getting the best overall deal on Ocean City MD real estate with the least amount of risk.
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Ocean City MD Short Sales
An Ocean City MD short sale is when the seller of a property is attempting to get the bank to accept an amount less than what they owe on the Ocean City MD property. These transactions begin much like a normal transaction. The Seller will list the property with an Ocean City MD Realtor and put it on the market with the disclaimer that is is a short sale. Once an offer is secured on the property it will be negotiated like all other real estate transactions and then the Seller and Buyer will sign off on it. After that this is where a short sale transaction differs from a standard transaction. The Seller and their Ocean City MD real estate agent will then take the offer along with a multitude of the Seller’s financial documents and submit them to the bank for short sale approval. In order for the bank to grant an approval they want to see some form of hardship on behalf of the Seller, such as loss of income, health issues, divorce, etc.. Once the bank receives all of the requested documents they will then order an appraisal of the subject Ocean City MD property to ascertain its current market value. Once the appraisal is completed the entire package will be forward to a negotiator in the loss mitigation department of the bank whom will make a final decision. The negotiator can either approve, disapprove or counter offer the existing offer that has been submitted. Once an agreement has been reached by the bank, Seller and Buyer the transaction then continues on much like a typical Ocean City MD real estate transaction. You will have the right to do property inspections, review the Ocean City condominium association or Ocean City home owners association, have title work performed, etc. In the event there is a problem during any of these reviews or inspections you have the option to back out of the contract.
Ocean City MD short sales present great opportunities for value with minimal risk. The banks are eager to grant short sales as it saves them a lot of time, resources and money by avoiding the foreclosure process. Short sales require patience as they typically take at least 90 days to complete and sometimes much longer.
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As you can see, while all of the above scenarios are similar they each present unique nuances. When handled properly each one presents a great opportunity for value in Ocean City MD real estate with varying levels of risk. The key is knowing what you are getting into ahead of time and doing your due diligence. As a full time, experienced Ocean City Realtor this is something that we can assist you with. We have assisted numerous Buyers and Sellers with the succesful completion of Ocean City MD short sale transactions, which is no small feat. In addition we have assisted a multitude of Buyers secure Ocean City foreclosures and Ocean City bank owned property. They key to getting one of the deals is knowing about them as soon as they are listed, which you can sign up for below. Once an opportunity arises that matches what you are looking for we will provide you with recent comparable sales data to validate the overall value, ensuring you are getting a good deal. Feel free to contact us directly anytime at 443-614-9179 or by email if you would like to discuss this or anything else concerning real estate in Ocean City Maryland.
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