Purchasing a foreclosure property can seem like a no-brainer on the surface. After all, they can be a real boon for the buyer. A bargain price and a great investment can offer both short and long-term returns.
And the truth is, both banks and private owners are settling for a low pay off to get out from under the looming debt on the property.
Though the rate of foreclosures has dropped in Florida, the state still remains in the top ten as of August 2016 according to Bankrate.
Though this offers bargain hunters much to choose from, there are obvious obstacles when purchasing a Foreclosure. Most derive from an empty house which has been sitting uninhabited for months.
Especially in Florida, animals, rodents, and insects will have had their way and can leave costly damage in their wake. That is on top of the damage the prior owners may have caused by attempting to abscond with appliances, fixtures, and flooring. Of course, this includes only what you can actually see.
As a buyer, there are more than a few items which need careful inspection by a Florida licensed attorney.
A foreclosure, after all, is a lawsuit in Florida and needs to be treated as such. Just as you wouldn’t pull your own teeth or perform your own operation, you also need a professional when dealing with the Florida court system.
The sale of a foreclosure is unlike any other home transaction and can include more than one mortgage, liens, and several legal protections for banks, mortgagors, and individuals. As a buyer, you will want to have protection, too.
There can be many twists and turns on the typical 6-month road to a clean title on a foreclosure. And, no one wants to find out, too late, the title was not transferred before the property was listed, for example.
This can lead to at the least, an uninsurable property, and at most, legal proceedings against a bank or mortgage holder. (selling a home without proof of ownership is illegal)
More legal proceedings can ensue, however, this can leave the buyer, essentially, without a home. A case of “too late, didn’t read” have left some unrepresented buyers wishing they had let an attorney pave a safe road for them.
And, this is merely one hurdle a buyer may have to negotiate. The run of possible issues can quickly list longer than the feature selling points. With that said, there are more than enough gems in the rough from which to choose for savvy buyers.
And, many of them offer a great investment, even with both obvious and underlying issues. However, once you have found your gem, gather professional allies who are experts at polishing off all that rough.
At Towns Realty, we take our role in providing broker services at every level very seriously, from new homes to foreclosures. If there is any question on the rules of the law, we use counsel to ensure a safe and smooth transaction. Contact Towns Realty today.