What to Know When Buying Florida Foreclosure Property
So if you are considering foreclosure property as your next home or as an investment property, here are some of the things that you need to expect.
Choices
Keep in mind that there are plenty of properties in the Florida foreclosure market and as a homebuyer you should not limit yourself to couple of choices. It is also important that you have to take time checking the listings for potential bargain deals.
Florida foreclosures are available in three different stages. You can get homes from the homeowners whose property is about to be foreclosed. This is known as pre-foreclosures where you can get the most discounts for the property. You can also consider buying from foreclosures at auctions. But keep in mind that financing is an important part of auctions homes. Lastly you can purchase foreclosed properties from the banks. This process usually takes time since banks are only interested in borrowers and serious buyers. But with patience, you can surely get a hold of several property options available below market price.
Financing
Financing a foreclosure could be tough, especially if you are turning it into an investment. Keep in mind that the basic requirements still apply such as good credit score, reasonable debt-to-income ratio, employment and overall outstanding financial health. But because you are entering a foreclosure market, expect that it would be tough to look for a lender who would finance your venture. Not just because they see their purchase to be high-risk but the property as well… For sure there will be plenty of lenders who will be pushing your application denied or lowering the mortgage amount you need or even increasing interest rate to counterbalance your loan. But on the other hand, there will always be a way to negotiate the most acceptable terms for your loan.
Surprises and Risks
Always keep in mind that Florida foreclosures are often full of surprises and some of which are caused by the owners. And since you are entering the foreclosure market, then you have to expect properties that are poorly maintained or properties that are stripped off their fixtures and furnishings. But you can always avoid these things from happening by taking time in checking the condition of the property. Inspection is an important stage of property acquisition and you have to make sure that you give time for this and never skip this stage. This is very essential in helping you assess the property’s salability.
Ella Ayson
Florida Foreclosure
