Q: What is foreclosure property?
A: A foreclosed home has been reclaimed by the lender after the owner defaulted on the mortgage. “Once the lender has taken ownership of a home, they typically try to sell it as quickly as possible to recoup their losses, and that may lead to foreclosed homes selling for less than other homes on the market,” according to Freddie Mac.
Q: What is a short sale vs foreclosure?
A: “A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses,” according to the National Association of REALTORS.
Q: How to buy foreclosed homes
A: This is where your Lang Realty agent’s expertise is invaluable. There are so many variables, you can’t go it alone. For instance, many foreclosed properties have been damaged prior to sale, and repairs may be costly and not visible. Your Lang Realty agent will advise hiring a professional inspection of a foreclosed property.
Q: What are the benefits of buying foreclosed homes?
A: “The upside of buying a foreclosure is that you might pay a lower price than you would for a home being sold under normal circumstances,” according to the NAR.
Q: Pros and cons of buying foreclosed property
A: Pros: Foreclosure rates continue to rise, and Florida has the second highest rate this year. That means your Lang Realty agent can show you more listings and you’ll have more choices.
Con: Foreclosure sales are often rescheduled and can even be cancelled for a last-minute settlement or even a short sale.
