What exactly is a Foreclosure?
It is a legal process when the rights and ownership of the property go back to the bank or investor because the homeowner did not fulfill their financial obligation to the bank in means of a mortgage.
How can I buy a Foreclosure?
There are 2 different ways to buy a foreclosure.
- Auction – Where you can buy a foreclosure on the court steps.
- REO – Where the foreclosure property is listed with a REALTOR or real estate agent.
Are there pitfalls of buying a Foreclosure at auction?
When buying a foreclosure at an auction, you must pay cash and generally requires that you put a large down payment on the home and you cannot have the property inspected before the property auction. Often times homeowners are still in the property once the auction sale takes place and once you own the property it becomes your responsibility to evict the homeowner.
Why buy a REO property or bank owned home?
In most cases you are dealing with a real estate agent who lists and markets the property for the bank. When buying a REO property or bank owned home listed with a real estate broker, in most cases you will receive clear title, able to have the home inspected and do not have to pay cash but must be approved for a mortgage.
How do I get started in buying a Foreclosure?
Get yourself qualified for a mortgage and make sure you have enough money to make a down payment as well as the closing costs required for real estate purchases. Next decide in how much money you are willing to put into a foreclosure. In many cases foreclosures are not in tip top shape but these homes can be bought below market value. Hire yourself a professional real estate agent who is familiar with the foreclosure process. Remember each state is different. Last but not least, brace yourself to make an offer quickly if you find the home of your dreams!
EXIT Beach Realty is quite familiar in selling foreclosures in the Greater Daytona Beach area. Contact one of our agents today!