Parkland Foreclosure and Short Sale

Definitions

FORECLOSURE
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a real property due to the owner's failure to comply with a mortgage. 

SHORT SALE
A Short Sale is a legal, lender-approved solution to help financially strapped homeowners to get out from under their mortgage obligation.

AUCTION
The process of selling property at a public sale to the highest bidder. The person conducting the sale will call out the initial asking price and each price that anyone in the audience bids until no one will bid a higher price.

Is a Foreclosure property right for you?

Everyone possesses the common interest of finding a bargain. However, buying a Foreclosure is not for everyone!

Property condition is an issue. Properties in foreclosure do not come with any implied or expressed warranties from the seller. Buyers must make certain assumptions regarding the condition of major components of the home and must consider the cost of repair and refurbishment. One of the common factors you will find with almost all distressed real estate is the landscaping needs some serious maintenance.

Time period is also a factor to consider. In some cases the time period to purchase a distressed home is long, especially in a short sale, where the purchase process is subject to bank approval.

How to buy at below market value?

Everyone looking for a bargain focus to the Foreclosure and Short Sale market. But not all foreclosures represent bargains.

In Parkland there are lots of great deals though a traditional transaction. Finding the best deals requires research, market analysis and time reviewing all available properties.

Let Raffaele Covino assist you to find the right property for you!

Buying Foreclosure in Parkland FL

There are three different ways to buy a distressed property and each method has a number of advantages and disadvantages.

Pre-Foreclosure Purchase (purchase directly from the owner)

Buying a pre-foreclosure property from a private homeowner is the best option for a typical buyer.

Some of the best deals can be negotiated with sellers who typically are very motivated to get out from the mortgage without destroying their credit rating.

The buyer gets a below-market price on a home and has time to research the title and condition of the property.

Bid at the Auction

Foreclosure auction sales are typically the domain of the professional investor. These properties are formally in default, and sold to the highest bidder at an auction.

Buyers often are required to pay in cash at the auction and may not have much time to research the title and condition of the property in advance. Buyers will be competing against savvy professional investors and the lender, who also participate in the auction, in order to prevent the property from selling for a low price that would cause the lender to lose money.

A public auction often offers some of the best bargains and avoids the unpredictability of dealing directly with the owner.

Buy directly from the Lender (buy after the auction)

If the lender takes ownership of the property, either through an agreement with the owner during pre-foreclosure or at the public auction, the lender will usually want to re-sell the property to recover the unpaid loan amount. A property owned by a lender is also known as REO (Real Estate Owned), bank-owned or foreclosed.

The lender will then typically clear the title and perform needed maintenance and repair; however, the potential bargain for these REO homes is typically less than a pre-foreclosure or auction property. The advantage of purchasing directly from the bank is the elimination of all title risk.