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What Is a Foreclosed Home, and Why Is it Sometimes Cheaper?
Foreclosures occur when a lender takes back property from a homeowner who has defaulted on their mortgage. Foreclosures are usually significantly cheaper than the going market rate, as banks are motivated to sell these properties quickly while trying to get as much of their investment back as possible. There are different kinds of foreclosure sales depending on the situation, including pre-foreclosures, short sales, sheriff’s auctions, and bank-owned properties. Buyers can buy a foreclosed property at auction or in a direct sale. An experienced Oakland Park, FL real estate attorney can represent you in the purchase of a foreclosed home.
What Are the Risks of Buying a Foreclosed Property?
There is no such thing as a free lunch, and there is no such thing as a risk-free foreclosure property. With the lower prices come potential issues, but an experienced real estate attorney can help you navigate these issues:
Hidden Liens
A foreclosure "cleanses" the title to the property from any named liens and debts. However, if there are hidden debts that are not named in the foreclosure, these can remain attached to the property, potentially harming your future property interests. A thorough title search can minimize these issues.
Property Condition
Foreclosed properties are usually sold "as-is," meaning that you are buying the property and whatever known and unknown defects it has. Additionally, sometimes due to the competition for foreclosed properties and the seller’s desire to sell quickly, you may not have much of a chance to find out the exact condition of the property before you need to decide whether to buy it.
Competition
If the property is in high demand you may face stiff competition. Sometimes foreclosure properties may also require cash-only transactions, which may or may not be an option for you.
How Can a Lawyer Maximize Your Chances of a Successful Foreclosure Purchase?
Lawyers can employ various ways to help you as you try to buy a foreclosed property, including:
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Negotiation skills: An experienced foreclosure attorney can negotiate with the bank and at auction to ensure that you are legally and financially protected.
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Title Search: A qualified lawyer can ensure that a proper title search is conducted, specifically looking out for common issues in foreclosure properties.
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Targeted Experience: The foreclosure process is unique, and an experienced attorney will guide you through it so you know what to expect and do not make unnecessary mistakes. They will also advise you of any potential legal or taxation issues.
Call an Oakland Park, FL Real Estate Attorney
The Florida market can sometimes offer opportunities in foreclosed properties, but these require special care not to risk legal challenges. That is where the experienced Broward County, FL foreclosure attorney at The Elliot Legal Group, P.A. can ensure you understand your legal options. Call the law firm at 754-332-2101 for a consultation to discuss your real estate concerns.
