Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan. In short, foreclosure is what happens when a homeowner fails to pay the mortgage.
How would a home go into Foreclosure?
- Lost their job.
- Medical Issues.
- Excessive debt.
- Squabbles with co-owner and/or divorce.
- Job transfer.
- They can no longer afford to maintain the home.
- The can no longer physically take care of the home.
The stages of a foreclosed home:
- Missed payments.
- Public notice of default, in Florida this comes after the lender has accelerated the note.
- Pre-foreclosure. This is the stage the case works thru the court system.
- Post-foreclosure. If a third party does not outbid the bank’s judgment, then the bank gets title to the property.
The primary reason to consider purchasing a foreclosure home is the potential for a great deal.
It can be an exciting and sometimes overwhelming process. One thing to remember, negotiating the price of a foreclosed home may take a little longer than a”normal” transaction because it may require multiple levels of approval.
- Find an agent.
- Get preapproved for a mortgage or have a proof of funds if you are paying cash.
- Study the sale prices of comparable homes in your area. You are taking some risk in buying a foreclosed home. You should get something in return for taking that risk.
- Remember the sale is as-is. You get what you inspect, not what you expect. Make sure you hire a licensed inspector. the bank has not maintained or had first-hand knowledge of the foreclosed home prior to the acquisition. Therefore, you generally will not get a seller’s property disclosure.
Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.
During the beginning of the housing downturn, Steelbridge Realty LLC was the Brokerage arm of several private equity entities. We assisted them with asset modeling and market metrics. Many prominent local commercial projects were included in this scope of transactions.
Need help buying a foreclosed home?
Please call 239 694 3300 or use the form below: