Fore Closure Homes in South Florida

Some of the best real estate deals can be found in the foreclosure homes market. In today’s market, there is a very high probability that in every community and neighborhood you will find a home or two that is marked for foreclosure. But just because there is a glut of foreclosure homes on the market, that doesn’t mean that buying such a home is any easier than a traditional home purchase.

It can often be hard to find available foreclosed homes and can even be more challenging to find a real estate agent who has the required expertise in such sales. So to help you have the most efficient and rewarding foreclosure home purchase experiences possible, we’ve highlighted some key actions and points that will help you enjoy this process.

Know the Home

This is where it can take a bit of extra work – some real estate sites charge for access to the foreclosure list in your community. So it is worth taking the time to work with a real estate agent and websites that offer this information for free or at a reasonable rate. You need to know as much about the home before you consider making an offer. So take your time and do the research and use any and all foreclosure lists available to you.

Visit the Local Assessor

If you have found a home that looks like a good fit, the next step is to visit the website for the local assessor. Depending on the information provided to you on the website you are searching for properties, you can learn things such as: the name of the owner of the home, tax details, square footage numbers, the assessed value, what the seller paid for the home and how long the seller has owned the home. This and other information goes a long way in helping you create your offer and in determining if the home is right for you.

Research the Neighborhood and Community

Often a neighborhood or community will have a range of homes listed for foreclosure. This is because the neighborhood or community went through a period of inflated real estate prices and is now going through a decline. Remember that just because a home is listed at a foreclosure price, doesn’t mean it is a good buy. You need to consider the overall economic potential of the neighborhood and community as well as job growth numbers. There is a reason why the neighborhood or community is in a decline and you don’t want to be caught up in this.

As well as these specific pieces of advice and tips for buying a home in foreclosure, don’t forget the basic keys to real estate success:

• Working with a qualified real estate professional.
• Having your financing in order.
• Doing your research.
• Knowing what you want and need from your home.
• Being patient.

Short Sale Homes - South Florida

Have you ever thought about purchasing a short sale home? In today’s market, there are lots of options for you with short sale homes.  In summary, a short sale is the sale of a home for an amount that is less than the amount owed to the mortgage lender. In this type of transaction, the lender wants to save time and money by agreeing to take less money that what it is owed in order to sell the home. In this scenario, our sense of greed takes over and all too often buyers will  rush into making a short sale home purchase – forgetting the keys to success in the real estate market. While it is tempting to jump at the first home you find that is priced for a fast and short sale, don’t forget that you still need to do your research and you really do need to know what you’re buying.

With this in mind, we’ve put together a list of key points that you need to consider when buying a short sale home in Florida.

Be Prepared

In other words – do your research. Spend time researching the short sale market and know what is really out there. Visit website portals such as www.homeconnector.com, talk to your real estate professional, and get to know the neighborhood and community. By getting to know the neighborhood and community, you will be able to get a better feel for the overall situation and take in to consideration situations that may not be reflected in the sales price of properties in the area.

Know the Numbers

Because the home you’re interested in is listed as a short sale, the seller is willing to lose money on the sale but still does want to keep these loses to a minimum. So do some research so you know what the fair market price is for the home. Don’t expect that you can simply offer a very low number because the seller needs to make a fast sale. Before making an offer, work with your real estate expert to know what your goal number is and what your maximum number is.

One thing that is often times overlooked is that due to the depressed property values that have persisted over the past years in South Florida, there has been an influx of CASH foreign buyers that have seen great opportunities to invest in the South Florida real estate market. Hence, while many/some sellers might be in a pinch, there are many cash buyers out there who are able to close deals without being held up by cumbersome financing.

Don’t Get Emotional

Keep your feelings at bay! All too often buyers develop an emotional attachment to a home before they’ve even bought it. This often results in such buyers paying too much for the home or not being able to see the all the facts – simply because they have an emotional attachment to the home. Remember that there are lots of short sale homes on the market and that if you don’t get your first choice, there will be another one that will be just as appealing to you and your family.

Give Yourself Time

Short sales take longer to acquire than traditional home sales. So make sure you have ample time in your buying and selling cycle to allow for the extra steps that come with a short sale. With a short sale not only does the seller have to agree to the price but so does lender. This process can take weeks or even months for the lender to approve the sale.

Financing

This is a common theme with any home purchase – you need to have your financing in order. Talk to your lender and make sure you’re approved for the amount you want to offer. Remember that the current lender on the short sale home is not going to be willing to take another risk. The best thing you can do is to be pre-approved for a mortgage, have a down payment ready and have a flexible closing date – this helps to put you ahead of other interested buyers.

The short sale homes market does have lots of good deals and opportunities for home buyers – but it is important to not get blinded by this. You need to do your research and make sure you’re buying the home because it is the right one for you and your family – don’t buy a house simply because it is a “good deal”.

Home Owner Considerations for a Short Sale

Are you a home seller currently thinking about how to sell your home? A short sale might be an option for you. If you are unable to make payments on your home and you cannot sell the property for an amount greater than or equal to the full amount of the loan, this may be an option for you.

Considerations

•     Home Sale: You will have to sell your home.
•     Debt Forgiveness: Your lender can forgive the full amount of the mortgage debt. All the terms can be found in The Mortgage Debt Relief Act of 2007.
•     Credit History: According to Fannie Mae, when a short sale is done, the debtor has to only wait 2 years to establish credit history. If you go into foreclosure, the mandatory waiting period is 5 to 7 years.

If you need to consider a Short Sale, get advice from experts on short sales in South Florida now!