Buying a foreclosed Real Estate property in Key West

In Key West foreclosed properties, called REOs (for Real Estate Owned by the lender), are owned by the lending institution or government agency that backed the mortgage. For one reason or another, the owner has failed to make payments on the loan and the lender has "foreclosed" on the property. This means that the lender has taken title to the property and has become an owner seeking to sell.

Foreclosed properties include both single-family homes and condominiums. They are sold individually or through auctions. Some institutions advertise their lists of foreclosed properties; others deal strictly through real estate agents. Local real estate agents usually have a current list of the foreclosed homes in their area and can provide information on these properties.

Fannie Mae, the Federal National Mortgage Association, is a large government holder of mortgages. It offers a toll-free telephone number that buyers can call to get a list of foreclosed properties in their area. The number is (800) 553-4636; (800) 221-4636 in Maryland.

The Federal Housing Administration (FHA) usually sells its foreclosed properties through an auction announced in the classified sections of local newspapers. Potential buyers submit bids on the day of the auction, accompanied by a certified check for a percentage of the bid price. The highest bid usually gets the home.