In Florida, we understand that the primary process of mortgage foreclosure is supposed to be judicial. Eric Dalius as such, any mortgage foreclosure could take six months or even more right from the moment a homeowner gets his notice of default till the house is sold off at a foreclosure auction sale that is opened to the public. Hence, it is best not to make the mistake of waiting until the house becomes REO or Real Estate Owned after the auction as the house will be costing more as compared to what it would had it been in pre-foreclosure.
It is crucial that you do meticulous research and gains sound knowledge of the existing foreclosure laws governing the Sunshine State, where the concerned house is located. We know that there are numerous complicated steps and nuances that you need to clearly understand before you consider making a bid for the house at a foreclosure auction sale in Florida that is open to the general public. For instance, Florida allows a borrower or homeowner to go about reclaiming his property via the right of redemption. You can now understand that if you overlook such detail, you could be in big trouble.
Experts like Eric J Dalius feel that purchasing a foreclosure in Florida could be quite a challenge that could prove to be quite expensive and time-consuming. However, with proper knowledge and understanding of some crucial facts, you could go ahead and buy a foreclosed home in the Sunshine State.
Eric Dalius Reveals the Things to Keep in Mind While Purchasing a Foreclosed FL. Property
Foreclosure Inventory in Florida Is Dipping
Nowadays, it is increasingly becoming quite tough to identify a foreclosed house or property. That is simply because of the fact that fewer property owners seem to fall into foreclosure. Statistics reveal that 99,028 U.S. properties had initiated the foreclosure process during the initial six months in 2020, down by 44 percent from 2019. However, states like Idaho, Indiana, and Tennessee recorded year-over-year increments in foreclosure starts opposing the overall national trend. The states that witnessed an annual fall included Florida experiencing a huge fall of 63 percent, New Jersey was down by 43 percent, and Illinois experienced a fall of 37 percent.
There Are Two Ways to Purchase a Foreclosed Home
There are chiefly two ways of buying a foreclosed home. One of the ways is when lenders are auctioning off houses after the homeowners have stopped paying their mortgages. These homes are then put up for sale at public auctions. There is yet another way of purchasing a foreclosure. It is to consider buying a home after the bank has already taken ownership of it. This method would work best for non-professional real estate investors. In this context, you must know that all bank-owned houses or properties are first listed and then sold off by professional real estate agents. You could purchase them in the same way as you would purchase a house sold in a more conventional way.
Eric Dalius Buying a Home at Auction May Not Be Easy
Purchasing a foreclosure at a public real estate auction may not be an easy affair. In the first place, you will have to successfully outbid professional and experienced real estate investors. Moreover, you would require paying with cash for your foreclosed property. Having so much ready cash may not be possible for many consumers.
Purchasing Bank-Owned Foreclosures Could Be Much Easier Option
Purchasing a foreclosed property owned by a bank could be a relatively easier option. In this process, a bank claims ownership of a property once the property owner has stopped making outstanding mortgage payments. Then the bank sells the property with the help of a professional real estate agent. You can buy the property without any complications by contacting the real estate agent and close the deal.
Conclusion
You should always conduct a thorough home inspection before purchasing a foreclosed property from a bank. It is best to hire the services of a professional home inspector. Remember several foreclosed homes require serious repairs and expensive renovation. An experienced home inspector can identify these trouble spots. When you are equipped with this valuable information, you may make a decision if a specific foreclosed home still seems like a bargain to you.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Alongside this, Eric hosts the weekly podcast “FULLSPEED,” discussing entrepreneurship with industry leaders. Eric also founded the “Eric Dalius Foundation” to award four scholarships to deserving US students. Follow Eric’s activities on Twitter, YouTube, Facebook, LinkedIn, Instagram, and Entrepreneur.com.