Today there are many homes that have been foreclosed on in Florida. In fact Florida ranks second in the nation in available foreclosure properties. There are nearly 280, 000 home foreclosure in the state, that is up nearly 300% from 2006. People just tried to buy too much home for their financial abilities.
Banks and lenders just don’t want to sit on empty houses! Empty houses don’t produce money and they do require upkeep. That means there are a lot of properties out on the market and these will be sold with substantial savings for the buyers. This is a great opportunity for those that want to find investment property.
There are many different types of property in Florida that are great buys now! There are all kinds of property to choose from. You have your pick of commercial real estate, land, homes, condominiums, etc.
Let’s look into what foreclosure is, and why there is so much prime real estate on the market today at rock bottom prices (its not because the property has something wrong with it!). When a person purchases a home or a property, they usually ask for financing from a bank or a lender. This allows them to pay for the property or house on a month to month basis. If they get a fixed rate mortgage, then they know what their payments are going to be throughout the term of the loan. But a few years ago people chose loans that were not fixed rates. They chose ARMS or variable mortgages, expecting that interest rates would not go up. They Were Wrong! Interest rates went up and with it their payment amounts. Now they have a hard time making those payments based on their income and have no other option except to give the house back to the lender.
A lot of people got into too much of a house for their income level, the wrong type of mortgage for their needs, or lost their job and just couldn’t continue to pay their home, so they have to return it to the lender.
These people have no other option except to let the bank foreclose, and the lender has no other choice expect to take the property back. Worse yet, the lender doesn’t want the property, this implies even more expense for them. They have to do maintenance, keep the property up, etc.
The lender needs to sell the property off quickly and will sell it directly or through an auction, which means that they will usually sell a property off at a discount and this discount can even be up to 20% off.
This is why there are a large number of real estate bargains in Florida, and why these properties are so great for real estate investors, or for people that are thinking of moving to Florida and starting a new life.
Author: Rex StevensonThis author has published 13 articles so far.