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.