Buy Florida Real Estate Foreclosures

Florida mortgage defaults threaten to hurt not only the homeowners who forfeit their properties to lenders and banks. Florida real estate professionals say foreclosures could drag down already sluggish housing prices throughout Florida.

For every Florida foreclosure within one-eighth of a mile of a single-family home, property values decline by about 1 percent, and even more in dense developments. Florida real estate foreclosures mean lower property values.

Based on the study, the value of a Florida home near one property in foreclosure could drop at least $3,800. Many Florida real estate experts recommend that neighbors of foreclosed homes postpone selling their own properties until the housing market improves.

Mortgage specialists say foreclosure filings and late-payment notices are expected to peak this fall, leaving lenders with a glut of properties to sell.

How would you like some
rental income?

Do you own a Florida condo real estate rental you only use part time? Why not rent it out to other respectable golfers like yourself and make some money while your at it.

The mortgage foreclosure process creates three sets of real estate investing opportunities: the "Default/Pre-Foreclosure" phase, the "Auction/Sale" phase and the "REO" phase.

• Default/Pre-Foreclosure - Buying pre-foreclosures involves working directly with the homeowner and sometimes the lender. To accomplish a successful purchase, most experts recommend the following: Locate loan in default, inspect the property, determine the market value of the property, fix-up costs, potential sales price and profits, arrange default work out by negotiating with the owner and the lender, close on the property, repair and resell it quickly.
• Auction/Sale - When bidding on foreclosures at auction, you compete against the lender and other investors. Auction buyers research properties prior to the sale date, calculate values and potential profits, determine bid price and participate in the auction.
• REO - An REO occurs when the lender takes back the property to gain possession and cut its losses.

Investing in foreclosures can provide excellent profits. Each of the three foreclosure opportunities presents both rewards and certain risks.