Steps to Purchasing Pre-Foreclosures in South Florida
The process of finding and buying a home can be absolutely overwhelming. There seems to be an endless amount of traps to fall into or loopholes to overlook when purchasing a property.
The most common mistake a homeowner makes is to budget mortgage payments using only optimal conditions when they factor price. If this is done and unexpected expenses occur, the owner will no longer be able to afford the mortgage he has to pay. If he continues to miss payments, the bank will foreclose on the property and assume control of the house.
As advertised ad-nauseam in the media, this can present an opportunity for a buyer to save money on a foreclosure listing. This is possible because, when a bank repossesses a house, they must then attempt to sell it and recoup their losses. They do this by placing it on a foreclosure list and either selling it privately to an individual or publicly at a foreclosure auction, to whoever is willing to pay the highest price for it.
While this is still usually below what would be paid for the house on the open market, since these listings are available to the public there is relatively little gain for the real estate investor, as numerous bids drive the prices up. With the amount of attention foreclosure lists get these days as well as the high demand for housing in the South Florida area, a good deal on a foreclosure is increasingly hard to find. In addition, it must be noted that foreclosure properties are owned by a bank, not an actual person, and the bank can be patient, stubborn, and unmotivated to drop below a certain price for a property. This will often make the minimum prices on these homes much higher than would be available had it been sold by the previous owner himself. This is not an ideal situation for creative real estate investors.
Since most consumers and investors are often searching these lists for hidden steals, they often walk away from the process very disappointed. Enter the market of pre-foreclosure homes. These are homes that have been marked for foreclosure because the owner is not able to afford their mortgage, but have not yet come into the bank's possession. As a result, if you can find these deals you will be able to deal with the owner directly. These homeowners are typically highly motivated to unload their houses. Many times without cashing in their equity, just to avoid the ghost of foreclosure. This means that investors will be able to buy the house for a price much lower than they would by waiting until the house has fallen into the hands of the bank.
So how do you find these pre-foreclosure homes? The answer is at www.MyHouseDeals.com. As a member of MyHouseDeals.com, we'll keep you updated about new properties in your area daily, and each new house added to the list comes with full descriptions, value and repair estimates, and full contact information for the seller. Our goal is to do all the leg work for you so that you can focus on more important, like actually closing deals. Become a member for free today by clicking the button below!