Posted on Thursday, 08.27.2009Miami Beach Deals - Miami Beach Foreclosures
With foreclosures increasing in numbers, now is a good time to buy Miami homes
but first you must decide what your goal is. Will you:
Turn the property into a Miami vacation rental
Live in it with your family?
Or do you plan to rehab and resell?
Once you decide you will need to determine your risk level. Less risk is carried with bank-owned homes. Miami homes
sold at auctions may be more risky because they usually can not be inspected prior to purchase.
Foreclosures usually consist of three types of Miami homes:
Bank-owned homes or REO (real estate owned): An REO describes a home, or property, that does not sell at foreclosure auction, and as a result, goes back into the hands of the bank or mortgage company. There is a huge inventory of REO’s right now making them the best opportunity! When purchasing Miami homes, REO’s are the safest and easiest foreclosure to make.
It is important to verify you’re paying a fair price when considering an REO. Research the market price, the value of the home and surrounding neighborhood. Remember, just because a property is in foreclosure
doesn’t mean it’s a good deal.
Pre-foreclosure or default properties: A default property is when a lender files a notice in court stating that they’re going to foreclose on a property. The homeowner gets a warning he or she is in default, but the lender cannot reclaim the property or sell it.
Short sales and auctions: A short sale is when the bank accepts less than what’s owed on the mortgage or the full price of the home. This process involves patience once an offer is made because it might take six to eight weeks before you hear back from the bank. Another downside, you have to negotiate with both the homeowner and bank.
Auctions require the most research and concern, especially since home inspections are hard to come by. Check for unpaid water bills or liens against the home prior to closing, and pre-qualify for a loan before you even start looking. When ready to start looking you can search listings with realtors, banks, local newspapers and county websites such as www.miamidade.gov and http://www2.miami-dadeclerk.com/Public-Records/ in Miami-Dade, or www.broward.org and www.clerk-17th-flcourts.org in Broward.