Foreclosure is a process whereby a lender or mortgage owner takeover ownership of a home in order to repay the debt that the current homeowner is unable to pay. Homes that have been repossessed by banks are sometimes referred to as ‘real estate owned’ or REO properties by those in the real estate profession. The proliferation of adjustable rate mortgages (ARM’s) has caused the number of foreclosed homes to skyrocket as homeowners are unable to pay their increased mortgage bills.
As with most other states, bank foreclosures in Florida have steadily been on the rise. Unlike other states, however, Florida is widely considered to be one of the hottest real estate markets in the country. The median home value in many Florida cities is well in excess of $500,000. Anyone looking for a great foreclosure investment opportunity should surely investigate the sunshine state.
The real estate market in Florida is very much a buyers market with many historical and striking upscale homes available at rock bottom prices. Often times these homes can be purchased at very low prices relative to market value. Even if you’re not looking for an investment opportunity, Florida foreclosures offer a unique opportunity to save a bundle on the purchase of a new home.
The ‘trick’ to making a killing with Florida foreclosures is buying the property from the bank as early as possible. Lists of homes that have recently gone into foreclosure are available to the public but in order to make big profits you need to contact the bank within days of the foreclosure proceedings. To do this you may need to pay a small registration fee to a list broker. The list broker will provide you with homes that have just recently gone into foreclosure, usually within the week. The cost of such a list is well worth the registration fee as the early acquisition of a single property can provide enough investment income for an entire year!
If an investor really wants to make a killing with Florida foreclosures then they should try to contact the homeowner before the foreclosure proceedings begin. As an investor you can then negotiate with the homeowner to take over their mortgage obligation in exchange for a substantial percentage of the homes equity. Often time’s, home owners are more than happy to negotiate with an investor in order to save themselves the public humiliation of foreclosure.
Contacting homeowners before foreclosure proceedings begin is not the easiest of tasks as mortgage delinquency information is not public information like foreclosure filings are. In order to make big profits with pre-foreclosures you will need to advertise your services on the internet and in the area you wish to purchase property in. With even more foreclosures predicted in 2008, your advertisements should produce more leads than you will be able to handle.
If you need more foreclosure help then quickly head over to Foreclosure Help and Advice where you will find helpful foreclosure tips, advice and resources including information on foreclosure plans, negotiating and more Foreclosure Information.
