subject: What to Expect When Buying Miami Foreclosures [print this page] Author: Mark Ferrer Author: Mark Ferrer
Miami foreclosures are undeniably some of the most affordable properties in the city. You could easily get as much as 30 percent discount from these properties. But while they may certainly be cheap for many, if not all, homebuyers, they are not without their drawbacks. So when you are considering a foreclosure either as your next home or as an investment property, here are some things you need to expect.
Choices
When it comes toMiami foreclosures, you shouldnt limit yourself to just a couple or so choices. There are plenty of foreclosures available and you should take some time checking the listings for potential bargain deals.
Miami foreclosures, in addition, are available in three different stages. You can get homes from the homeowner whose property is about to be foreclosed. This is also known as pre-foreclosures. This is also where you could get the most discounts for the property. You can also buy foreclosures at auctions. But you have to know that financing is an important part of auctioned homes. Lastly, you can purchase properties from the banks. This process takes time since banks are only interested in borrowers and serious buyers. But with patience, you can surely get a hold of several property options available below market price.
Financing
Financing a foreclosure could be tough, especially if you are turning it into an investment. The basics still apply: good credit score, reasonable debt-to-income ratio, employment and overall outstanding financial health. But looking for the lender who could finance your venture will be tough. Not only are they going to see your purchase as high-risk but the property as well. Many lenders will be hard-pressed in denying your application or lowering the mortgage amount you need or even increasing your interest rate to counterbalance the loan. On the other hand, there will always be a window of opportunity you can use to negotiate the most acceptable terms for your loan.
Surprises and risks
Lastly, Miami foreclosures are often full of surprises, some of which are caused by the owners themselves. Dont be surprised if you see poorly maintained homes or properties that are stripped off their fixtures and furnishings. But you could easily avoid being surprised if you take some time checking out the properties you're interested in yourself. Checking the condition of the homes is an important part of buying foreclosures. This is essentially useful in helping you assess the propertys salability.
