The home was in one of Palm City's better neighborhoods, a leafy gated community with a variety of home styles. My clients were seeking a pool home under $250,000 and we had looked at several, all at the top of their price range. I suggested a short sale or foreclosure as an option, but they did not want to take on a renovation. When I spotted this Freddie Mac foreclosure I knew it could be just right for them.
As we pulled up to the home I warned them about what could be lurking inside: missing appliances, fixtures ripped from the walls or even owner inflicted vandalism. We entered the house and my concerns evaporated as I realized the house was largley in tact. Sure, the appliances were gone and the water heater was missing, otherwise it appeared to need only patching and painting. It had 20" tile laid on the diagonal and plantation shutters throughout the entire house.
Outside was a screened pool and a large private backyard. But the pool was green and the deck covered in mold. I assured them that it would clean up easily and judging by the water depth from recent heavy rains it looked like it was holding water. Upon closer inspection we discovered that the pool pump was missing and the owner had severed the air conditioner lines in a failed attempt to remove it.
But at $169,000 this was obviously a good deal and the couple decided to make an offer. I urged them to go in at full price or slightly above as banks will dismiss low offers. I also discovered there were already two offers in ahead of us, so I suggested we go in with an offer of around $172,000. To my surprise they offered $174,000, which the bank accepted the next day.
It gets better. My buyers were planning on wrapping the repairs into a 203K mortgage when I received a call from the listing agent telling me Freddie Mac would be contributing $6,000 towards closing costs, fixing the pool, A/C, and water heater and throwing in a two year home owners warranty for good measure.
So we are on our way to a successful closing. Barring any unforeseen inspection or financing issues, these transplanted Northerners will be enjoying their Florida dream home in just a few weeks.
Contact Eric Slifkin for information about Fannie Mae or Freddie Mac foreclosures and special financing programs.