Bidding at Florida Foreclosure Auctions….About To Go Gangbusters
It is no secret that the housing market is on the mend. In states like Florida that were hit especially hard by the housing bubble of 2003-2007, this is welcome news. Florida’s recovery has been driven as much by investor purchases as by traditional homeowner purchasers. Regardless of the reason behind the improvements, the fact is that the number of foreclosure filings is down across the state, and the number of houses going to auction is up.
With fewer foreclosures in the pipeline, and more sales churning through auctions, the backlog is beginning to ease. With this shift in the paradigm, traditional loss mitigation options such as short sales have been opted out for foreclosure auctions because the lenders believe they can get more money for a property at auction than they can from a short sale.
Another effect of increased auctions is that buyers have another means to acquire property. However, proceed with caution because foreclosure auctions can be tricky. Auction purchases are notorious for being riddled with lingering liens and outstanding balances owed to third parties. These liens can leave unsuspecting buyers owing substantially more for a property than they expected.
Accordingly, if you are considering purchasing a property at auction the best thing you can do is consult an attorney before bidding on the property. When contemplating an auction purchase, special consideration should be given to the following items:
- Check title to ensure there are not lingering liens on the property
- Make sure you are paying fair market value for property
- Check land use, zoning, association restrictions to ensure you can do what you want with the property
- Check with insurance companies to ensure you can insure the property
- Consider financing options to ensure that you are able to obtain a loan for the purchase
- Consider whether there is there a better way to take ownership of the property
- Call Us! With an in house title company and as licensed real estate agents and attorneys we are an excellent source of information for buyers looking to purchase property at a judicial auction. If you are in the market, contact us today!