Foreclosure Homes in Miami: What to Ask
A lot of people think of seeking out great real estate deals by jumping on foreclosure homes in Miami.
While this can be a prudent move, there are risks involved and in Florida. A recent piece of state congressional legislation went into effect has changed the process. Read on to discover exactly what happened and how it affects your options.
So, are you interested in checking out foreclosure homes in Miami, Florida? Want to get on the internet and do a Miami foreclosure search?
Foreclosure Homes in Miami, What Are the Differences?
Miami foreclosures can be a gold mine or a land mine, you just need to get all the information before engaging in the process.
So, let’s take a quick look at what a foreclosure is, exactly, and in particular, Miami foreclosures.
So what happens with a foreclosure? Simple enough. It’s when someone owns a house and they can’t make their mortgage payments. They basically decide to default on the loan and dump the property without paying what is owed to the bank.
The lending institution that loaned the money for the house wants to recoup their investment, and the best way to do so is to take possession of the house. In order to sell it, getting back as much of they money they initially owned back.
The foreclosed upon homeowner is then left with a major hit to their credit report, and the bank must sell the property to (hopefully) get enough to cover the initial amount of money loaned to buy the house.
The process of foreclosure can take as long as 180-200 days. Depending on the situation, some may be shorter, some longer than that. Because of the lengthy process, many lending institutions consider these properties massive liabilities in their future earnings. They are willing to let go of them far below market values.
Now, in Florida, there’s a twist (other states, too). In 2013, the Florida state legislature passed House Bill 87 (The Florida Fair Foreclosure Act) which makes all foreclosures within the state a judicial process. Rather than allowing the bank to move in on the resident without due process, the state is now involved.
Miami Foreclosure Arbitration in Summary
What does that mean? In a nutshell, it just means that the financial institution who loaned the money must go through the courts to get their money back.
By using the judicial branch of the state government as an arbitrator, both the lending institution and the homeowner will receive a relatively fair treatment of the process. If you talk to landowners, they might disagree, but initial lending contracts often have their own loopholes which do favor the banks. This is your chance to extract the value taken from them in overleveraged housing deals that have gone bad!
That doesn’t mean, of course, that you can’t enter the fray and buy a foreclosed property cheaply. All it means is by sending the process of foreclosure to the courts, a sometimes harrowing process for each party involved, will become less so.
Miami Foreclosure Search, Do Your Homework and Hire an Expert
If you want to check into foreclosure homes in Miami, it pays to do your homework, because, with today’s uncertain financial and real estate picture, there are good deals to be had and bad ones.
A recent Miami foreclosure search turned up a listing for 989 homes that have been recently foreclosed upon. That is not athe actul total, but the one’s that have already passed into the public record. The real number will be much larger. And that figure just indicates the number of homes reported.
The thing to do is to contact an expert in Miami foreclosures, someone familiar with the foreclosure of homes in Miami.
Of course, it goes without saying, do your research. An internet search engine or a trusted real estate advisor can be your friend. A Miami foreclosure search will turn up multiple types of properties from the ultra luxury to the decrepit worthy of demolition. You will always see the public record of the details of the Florida Fair Foreclosure Act. Other important details will also be disclosed making foreclosure purchases one of the most transparent on the market.
It really will pay off to know as much as you can and contact a local Miami real estate expert like Dan Maza, can be a real asset in your time versus money investment in foreclosures in Miami.