Ocean City Real Estate and Ocean Pines Real Estate

Ocean City Foreclosures, Ocean City Short Sales and Ocean City Distressed Properties

“All I want to see is Ocean City foreclosures and Ocean City short sales!”  As an Ocean City real estate agent this is something that I hear just about every day from my current and future clients and understandably so.  Foreclosure properties, short sales and other distressed properties currently present some of the better values available in the Ocean City MD real estate market and Ocean Pines MD real estate market.  These descriptions (foreclosures, short sales, REO listings, distressed property, etc.) get thrown around interchangeably when in actuality they each present different situations with unique circumstances.  We thought it would be helpful to explain the differences between Ocean City foreclosures, Ocean City bank owned properties, Ocean City REO properties, Ocean City short sales and Ocean City distressed sales so that you would know what your looking at and what to expect when searching through the Ocean Pines and Ocean City real estate listings. This article will provide an overview of each of these situations and we will post additional articles outlining each one in greater detail.

Ocean City Foreclosures
Ocean Pines and Ocean City foreclosure properties are situations where the current owner/borrower of a particular property has defaulted on their mortgage (stopped paying or missed numerous payments) and the lender that holds the mortgage is exercising their right to take the property back through the foreclosure process. There is a legal process and time line that needs to be adhered to and the bank has to give the current owner adequate notice that they are going to pursue a foreclosure and give them an opportunity to bring the mortgage current. In the event that the current owner does not bring the mortgage current the bank will then offer the property at a public sale (typically an auction) and the property will go to the highest bidder.  The bank will set a minimum amount that they will accept for the property at the auction. If this amount is met then the property goes to the highest bidder. If the reserve amount is not met then the bank will take the property back and it will turn into an REO property (real estate owned).  The latter situation is what happens most frequently in the Ocean City and Ocean Pines real estate markets.

Foreclosure properties typically present the best market values available, however they come with the most risk. The properties are sold "as is" meaning you take them in their current condition without the right to an inspection and the bank will not fix anything. You are also typically responsible for all associated fees including back taxes and association fees, as well as all of the settlement costs.  If you do your due diligence ahead of time and know what you are getting into then Ocean City foreclosures or Ocean Pines Foreclosures can be a great opportunity. As an experienced Ocean City real estate agent I have assisted numerous Buyers with the acquisition of foreclosures in Ocean City and Ocean Pines and would be glad to the same for you.

Ocean City Bank Owned Properties and Ocean City REO Properties
Ocean City bank owned properties or Ocean City REO properties are a situation where the bank has taken the property back through the foreclosure process.  Once the bank has taken possession of the property through the legal process mentioned earlier they will then have the property appraised for its current market value.  They will typically discount the property 10-15% from it's current market value and put it on the market for a quick sale.  These properties are typically listed with Ocean City Realtors and are the properties you will see listed on this site in the Ocean City foreclosures section and on other Ocean Pines and Ocean City multiple listing service (MLS) feeds.       

Ocean City bank owned properties are great opportunities for value and come with minimal risk.  As opposed to foreclosures you will be able to preview these properties before putting an offer in on them. Once your offer is accepted you will have the right to have professional inspections performed on the property. The properties are still sold "as is" however if the inspections you have performed are not to your satisfaction you can be released from the contract with no recourse against you. The banks also bring any delinquent taxes and association fees current at the time of settlement.  There is a lot of competition for these listings in the Ocean Pines and Ocean City Maryland real estate markets due to their overall strong market value.  Most of these listings go under contract within a few days of being listed for sale, typically with multiple offer situations.  In order to be in a position to get one of these great deals you need to know about them as soon as they hit the market.  We would be glad to email you these properties as soon as they hit the market, simple fill out our Property Information Form and we will get them to you.

Ocean City Short Sales
Ocean City and Ocean Pines short sales are a situation where the current owner/borrower of a particular property is trying to get the lender to accept a sale amount that is less than what they owe on the property. These have become very popular in recent years with distressed home owners and they have been quite successful.  In order for a Seller to qualify for a short sale they have to have some form of hardship such as the loss of a job, health issues, divorce, etc. that the bank finds acceptable. Once an offer on the property is received the seller signs off and then submits the offer along with various financial documents to the bank and requests a short sale. The bank reviews the information and then either approves or rejects the sale.  

Under the right circumstances and scenarios short sales present good opportunities for properties that are in good condition and have strong overall market value.  The buyer of these properties still has the right to inspections and all taxes and fees are typically brought current at the time of settlement. The biggest drawback of short sales is that contrary to their name they can take some time to get through the process. A good short sale will typically take about 3 months to complete, with many taking longer. That is certainly not the rule….this week as I am writing this I had one approved in 13 days.  If you become interested in an Ocean City or Ocean Pines short sale there is a fair amount of homework that I will do ahead of time to ensure that the Seller qualifies and the listing agent knows what they are doing, which will save a lot of time and potential frustration down the road.

Ocean City Distressed Sales
Ocean City and Ocean Pines distressed sales commonly refer to all of the properties mentioned above as well as bankruptcy sales, divorce sales, tax sales, etc.  As you can see each one presents it's own nuances and unique aspects. The key is to know what you are getting into and doing your due diligence ahead of time which is what I am here to assist with. They all represent great opportunities for Ocean City MD real estate values when handled properly. A little bit of extra effort on the front end can save you a lot of money and potential problems down the road and more importantly ensure you don't overpay for something. As an experienced Ocean City MD Realtor and Ocean Pines Realtor I would be glad to assist you with any of these scenarios. Feel free ot contact me directly anytime at 443-614-9179 or by email. Have a good day and I look forward to the possibility of assisting you with your real estate needs.