Fort Lauderdale Real Estate | Ft. Lauderdale Foreclosures

Posted by Eric Miller on Monday, November 8th, 2010 at 6:09pm.

Ft. Lauderdale Real Estate Foreclosures Sugar or Arsenic ?

To the novice real estate investor Fort Laudedale foreclosures often look irresistibly attractive. Who wouldn't want to make a quick profit, our at least to able to brag about the equity they had immediatley on closing day of their Fort Lauderdale real estate find. But whether a Fort Lauderddale foreclosure deal is really sugar or merely sweet-tasting arsenic depends on a list of complex factors.

Fort Lauderdale Real Estate great deal depend on your personal taste. Some people dream of a Fort Lauderdale Waterfront home, other dream of a Fort Lauderdale Beachfront Condo, in either case there are only in a few on the market in foreclosure today.  How will you feel about a bidding war ? How would you feel about continuing to take offers, that don't get responded to because of a "freeze" ? How many offers are you willing to write before the whole Fort Lauderdale Real Estate foreclosurer market starts tasting bad. It may not take long to realize the Fort Lauderdale Foreclosure market is not exactly true to the perception.

Foreclosure is a legal procedure in which a mortgage holder reclaims a property due to default on a loan. Each state can handle the process a little differantly. In the Fort Lauderdale area it often takes over a year for the lender to have marketable title. That year is often a year of property neglect.

Some Fort Lauderdale investors have tried to obtain properites through deals which seek to rescue the current owner. You don't want to get in the middle of someone's legal problems. Any thought of holding out a promise of 'rescue' to the current owner in exchange for part or whole ownership is extremely dangerous. 

Also keep in mind that, in some Fort Lauderdale foreclosure proceedings, borrowers have the 'right of redemption'. This allows them a certain period in which to 'cure the loan' — make back payments, shore up credit, etc — and reclaim title to and possession of the property.

Once the foreclosure process is complete, or at least inevitable, you can put in an action a plan to acquire the property. Look for deals in which, at minimum, a Notice of Default has already been issued.

Auctions on foreclosed property are common but tricky. Never bid blind on a property. There's no substitute for first hand knowledge of the physical condition and legal status of a property. In many cases foreclosed property auctions, "are subject to the seller s approval". The seller is the bank and they still have the right to say no.

Keep in mind that foreclosures are sold 'as is'. Unlike other property sales, no warranties are provided and any title insurance may have exclusions, that you need to be aware of.

At minimum, you'll need to have a professional inspection performed, even if you are a knowledgeable investor.  The property will not be perfect but, you want to know that the roof doesn't need to be replaced, that the plumbing is sound, there are no serious issues that you are not prepared for. The goal is to make sure that the condition of the property warrants the price you are about to pay. When defects are found, they can be acceptable if you're looking for a 'fixer-upper' and have the time and funds to deal with the situation. Discount your offer accordingly, you may be able to go back and negotiate a second time, unless of course there are buyers lined up behind you.

Do not ignore Fort Lauderdale Short Sales. These occur when a lender is willing to accept less money for a property than is outstanding on the loan. They take time and patience but you will have less competition. If you are getting involved in a short sale simply ask your realtor, " How many successful short sale closings have you had" , based on the answer make some educated decisions.

Remember to do your research. Its a great time to be a buyer of  Fort Lauderdale Real Estate, and we are here to help. Togther we will get a thorough inspection and make sure adequate title research is done. Any major defects or encumbrances in the form of tax or other liens has to factor into your offfer.

Remember, arsenic just tastes like sugar, it's still poison. Learn to tell the difference. We can assure you that there are no foreclosure jewels sitting on on the market for long periods of time just waiting for a buyer of Fort Lauderdale Real Estate. The buyers are back, their active and if your goal is a great deal get to work today with a Fort Lauderdale Realtor.

 

Eric Miller is an award winning Florida Realtor, salesperson and broker. His website, FortLauderdaleGroup.com provides an up-to-date guide to Fort Lauderdale Condos for sale, and the most complete buyer, seller and investor information for the Fort Lauderdale Real Estate Market.

2 Responses to "Fort Lauderdale Real Estate | Ft. Lauderdale Foreclosures"

Ft Lauderdale | Coming Soon |New Homes in Fort Lauderdale wrote: [...] Fort Lauderdale Housing Starts
Fort Lauderdale Foreclosures





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