South Florida Foreclosure
Foreclosure is the legal process that allows the lender to recover the money owed on a loan defaulted by the homebuyer.
The time to get a good deal on foreclosure real estate is now. If you are interested in buying or investing in South Florida Foreclosures, contact Veronica.
Buying a foreclosure property can be an excellent way to save money on the purchase of a home or property, but it is not without risks. The key to success is to be very well prepared and be sure to understand the process.
Foreclosure Process in South Florida
The foreclosure process in South Florida starts when the homeowner stops paying the mortgage. The lender files a public default notice which begins the pre-foreclosure period.
PRE-FORECLOSURE IN SOUTH FLORIDA
The homeowner places his or her property on the sale market. Upon sale and closing, the seller then is able to pay the remaining balance of the mortgage, including all principal and fees.
This is a solution in the best interest of the homeowner as it will least adversely affect his or her credit history. The prospective buyer can inspect the property, obtain financing and many times acquire the property below market value.
Strengths
The prospective buyer will have the opportunity to inspect the property prior to the purchase.
Weaknesses
Negotiate with a distressed seller. Pressure to complete the transaction before the foreclosure sale takes place.
SHORT SALE
When the market value of the property is less than the amount owed to the lender, the lender might agree to sell at a lower price than what is currently owed without ruining the borrower's credit. This is called a "Short Sale".
FORECLOSURE AUCTIONS IN SOUTH FLORIDA
If the property does not sell during this period, goes to public auction. At a public auction, the full purchase price will need to be paid for in cash and many times the property in question is not available for viewing. If no one bids on the property at auction, then it usually reverts back to the lender.
TIPS
- Be well-prepared in advance.
- Make sure you fully understand the process.
- Make sure that you have all necessary financing in place.
- Determine your maximum bid, and do not go over that amount.
REO/BANK OWNED FORECLOSURE IN SOUTH FLORIDA
When the lender has taken possession of the property (REO), the property then can be purchased by conventional sales. While a bargain is available on these bank foreclosures, it is generally less than if the property was purchased during the pre-foreclosure stage.
Strengths
The buyer has more time to secure financing and inspect the property.
Weaknesses
Buying a REO property usually offers little savings over a conventional sale.
Foreclosure Resources
| Single Family Homes |
| Condos & Townhomes |
| Ask Veronica |
