How to buy foreclosures!
Are you looking to cash in on the Jacksonville foreclosure market? There are a few different stages of foreclosure during which you may be able to get a good deal on a foreclosure home:
pre-foreclosure
Pre-foreclosure can refer to a large time frame - from simply behind on the payments to the day before the foreclosure sale day. If you have located a homeowner in "pre-foreclosure", the home may be listed on the market or not. Keep in mind less than 5% of those behind on their mortgage will ultimately foreclose, so the label "pre-foreclosure" does not actually mean there will be a foreclosure. There are many options for homeowners to get back on track and most will find an avenue to resolve their situation.
BUYING pre-foreclosures
Pre-foreclosures that are listed on the market can be sold just like any other home. Get a Jacksonville Realtor to help you pursue listed homes. If the home is not listed on the market and you wish to purchase the home, you will need to approach the owner yourself and see if they are interested in selling. Keep in mind folks in pre-foreclosure receive tons of letters, calls and even visitors interested in buying their home once their situation becomes public knowledge. You will have lots of competition, and your inquiries may not be well received.
BUYING AT THE FORECLOSURE SALE
Should the property make it all the way to the foreclosure sale date, you will have a chance to attend a public auction to buy the home. Buying at the auction can be quite risky, and not recommended for the novice. Homes are sold strictly as-is, meaning you wont get a contingency for inspection or title. Unless you are highly experienced at searching title and estimating property repairs, you should not attempt to buy at auction.
BUYING REO (bank owned home)
Foreclosures that don't get sold to an outside party at the auction will become part of the lenders portfolio. As lenders are not professional home sales people, they will hire a Realtor to sell the property for them. There is a period of time between the foreclosure sale day and the when the home gets listed during which the lender will have the property valued and secured, and they may not list the home right away. This pre-listing period can take days and I have even seen it take years in some cases. Calling the bank to try to purchase the home prior to listing is usually a futile act as lenders are not in the business of selling homes. 90%+ of all foreclosed homes will ultimately end up listed in MLS.
Don't know where to start?
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Last Updated on January 16, 2023 by Minna Reid