A pre foreclosure is a property that is only steps away from being repossessed by the mortgage lender. While the foreclosure process is ongoing, the homeowner is allowed to live in the home and make decisions to sell the property.
In most cases, if the homeowner is willing and able to bring his/her mortgage current, the lender is eager to stop the proceedings and allow him/her an opportunity to stay in the home.
However, sometimes the owner cannot afford to keep the property and must sell as quickly as possible. Here’s why you may want to consider buying a pre foreclosure:
Price
Pricing is a major benefit of buying a pre foreclosure. In most instances, because the homeowner is forced to sell the property to prevent losing it, he/she will consider prices that are substantially lower than the actual value. It is not unusual to find pre foreclosures at half (or less) of their value.
Timing
Florida’s real estate market remains saturated and there is a huge supply of pending foreclosures. If you are able to get a loan, now may be a great time to buy prime, upscale real estate at a fraction of it’s worth as homeowners continue to drop prices.
Negotiate with Property Owner
You can negotiate directly with the property owner when you’re buying a pre foreclosure. This gives you an advantage. You have leverage to negotiate a good deal and the owner has an incentive to sell the property fast to prevent foreclosure.
To begin your search, you can start in the same places you’d look for foreclosures. Search the Internet, read your local newspapers, and visit the foreclosure courts in your area.
If you need help finding and buying a property – or you have questions, contact our Fort Lauderdale real estate lawyers.
