Foreclosure is a legal process where the lender tries to recover the money from the borrower who has stopped paying the installments and the interest as per the stipulated mortgage contract, by the means of forcing the sale of the asset used as a collateral.
In the Cayman Islands, it is not a Foreclosure as such in that the Bank does not take title & possession of the property and is free to sell it for what may be outstanding on their Books. They obtain an appraisal and then list the property with a CIREBA member and try to get fair market value. So you do need to contact a CIREBA member in order to get information on Forced Sale Properties.
Most buyers don’t really prefer investing in a foreclosed property, however there are real opportunities available when purchasing Forced sale properties.
While it is easier to find properties for sale in the Cayman Islands via CIREBA MLS listing or through our office, foreclosure properties are difficult to find online. But we can make such options available to you as we have access to resources that list foreclosure properties for sale. Such properties might not be advertised openly but we can pull a list and provide you with the best options available to fit your budget and needs. If you choose to buy any foreclosed home or property in the Cayman Islands, you will have to understand and take care of a few aspects.
Firstly, foreclosed home or property isn’t easy to buy, it’s a bit of a grind! Since the owner still maintains possession of the property they are sometimes still living there and can make it hard to get access for viewings. The seller would not get anything repaired and the buyer will have to pay for it on their own. There is generally very little if any room for negotiation.
Foreclosed properties can provide good rental returns because of the vibrant economy and owing to the growing tourism in the region. Such homes are usually sold at lower prices than usual! All you need is to get in touch with us to get information regarding such homes for sale. Investors usually find foreclosed home and property attractive and to buy them, the following steps need to be followed:
You should always arrange to visit the property to take a look at its present condition before you move forward with the purchase procedures. We help setup a visit for you.
This is the rule of the thumb! Before you make an offer, search online and filter the similar real-estate owned (REO) properties to get a know-how of the property prices. As your agent I can help you with recent sale comparables. This will save you from overpaying in many instances.
Sometimes the listed price may have already been reduced and the home will have offers much higher than the listed price. Keep in mind that you still have to keep some room to pay for the repairs and revamp. Our broker can help you much in such cases.
Lastly, take someone who can assess the premises and provide you a monetary computation of the repairs needed. These Forced Sale Homes are generally in disrepair and you will incur major repair costs. You should know the estimated expenses before hand as you will have to arrange for mortgages and loans as well.
These are the important nook and corners to take care of before you invest in a foreclosed property. I can help you with this process, I have over 25 years of experience in the Cayman Islands Real Estate Market. So what are you waiting for pick up the phone and call me today at +1 345-916-1756.