Foreclosure Basics

What is it?

Foreclosure is the legal process whereby a lender (bank or secured creditor) terminates the owner's right to a property that was pledged as security for a debt. The lender usually then forces a sale of parcel of the real estate or home, often at a public action, to satisfy the debt after the owner defaulted to comply with and the lender. If it doesn't sell at an auction [ the minimum bid is usually the amount owed to the bank] then it goes back to a Realtor and will be re-listed below the amount owned to the bank.

Example

Many pre-foreclosure homes that were once offered as short sales end up as foreclosures, which are eventually deeded to the bank. The reason why following:

Sellers stripped foreclosure home's assets and / or vandalized the property.
Bank refused to accept less than its present mortgage balance.
Buyers passed by the short sale in favor of a hassle-free purchase.
Listing was overpriced at mortgaged amount.
Seller did not qualify for a short sale.

Why should I consider a foreclosure?

Foreclosures are the best deals. They usually are quick transactions and come free and clear. And according to the Florida Association of Realtors, the South Florida real estate market is being fueled by these types of sales, with over 60% of all recent sales consisting of foreclosures and short sales. This situation represents a unique opportunity for buyers to obtain property at a tremendous value, but the process of buying a foreclosed property can be confusing, especially for international buyers.

CLICK HERE to browse foreclosure listings the Miami area.

Links to More Information

Contact Simone for more information.