Lisa Simpson
Mar 6,2008
In: Foreclosed Homes

Florida Foreclosed Homes

Much the same as many of the US states and many other countries worldwide, Florida has a pretty extensive listing of foreclosed homes. Foreclosure is an inevitable fact of life, particularly when taking on too much unsecured debt such as credit cards, which causes a financial situation in the household where the debt cannot be properly contained, and the principle debtor finds himself with bad credit. Quite often the only way to redeem oneself from the bad debt burden is to used the collateral of the property that you reside in to take out another debt to service the credit card debt.

This is a vicious cycle of debt and unless the person who takes the secured loan on his home seriously, and services it correctly, he could stand the chance of losing that home to the bank or re-mortgage company, it just depends on who has the lien over that property or home as the collateral for the bad credit loan.

It has been suggested that purchasing a foreclosed home is probably one of the best investments a home owner can make, be this for their own private use or for investment purposes such as rentals. This is chiefly due to the fact that a Florida foreclosed home is purchased at approximately 10 – 20% discount off the market value in most instances, 25 – 35% in some instances and even as much as 40 – 60% in very rare instances. Meaning that by the time the deal is closed and paperwork signed sealed and delivered; there will already be equity available in the value of the home.

The advantages of buying Florida foreclosed homes are many, although often buyers of Florida Foreclosed homes express concerns that there might be outstanding judgments or liens clouding the title deeds, this is not in the least true and could quite factually be called a myth. The lender or senior lien holder over the property, once it has been sold, is able to eradicate all junior liens and judgments against the title of the property. All these costs will be absorbed or dealt with by the lender, who will then add them onto the asking price and on-sell it with a clear title. It is important however, to ensure that if the senior lender does not bid for the property at auction, then neither should you.

The issue of purchasing Florida foreclosed homes is not new but essentially lenders do want to sell their repossessions quickly in order to recoup their losses on the loan, they have developed highly effective ways of doing this, and the purchaser of just such a property should have no problems whatsoever.