Informative CNN.com Article on Foreclosures
CNN.com recently published an article entitled “Foreclosure bargain-hunting”. It is a must read for anyone who is considering to invest their money in foreclosures. Of particular interest is the breakdown of the foreclosure process. “First banks took them back from borrowers who fell behind on payments. Then, they then put them through public foreclosure auctions (often held on county courthouse steps) where the homes failed to sell. The banks then cleared any title issues and put them back on the market through a traditional real estate broker.” Unlike foreclosure opportunities that are conducted on the county courthouse steps, foreclosures that reach a traditional real estate broker are “sold free and clear, no liens, no debt. The seller even pays for title insurance”. In recent months, I have seen a number of foreclosures opportunities become available in Miami and Miami Beach. The number of foreclosures has definitely been rising and as adjustable rate mortgages readjust we will continue to see this number rise steadily. The most important aspect of conducting a successful foreclosure transaction is speed. If a property is priced at a level that equates to being an investment bargain then having multiple bids on the property within two to three days after the property is listed or repriced is not uncommon. Of course due diligence is required to ensure that the property is truly a bargain. Looking at lowest priced sales within the last six months in that particular building or neighborhood as well as what is currently available on the market is definitely advised. Miami Condo Investments conducts this type of comparative market analysis on all foreclosure deals that are recommended and can easily provide this information to any investors who would like to crunch the numbers for themselves.