In 2007 the number of home foreclosures aspired to almost 300,000 that was an increase of close to 300% compared to the number of foreclosures in 2006. People have had to pack up and sell whatever the can and move on. Now do you think that the banks want sit on all of these empty houses? Empty houses mean more expenses? This means that these foreclosed properties are going to be on the market and that there will be substantial savings for buyers that want a great deal!
Lenders and banks don’t like sitting on empty houses. These don’t produce money and they require a lot of maintenance. This means that there are lots of opportunities in the Florida real estate market and these are sold at great savings for buyers. This is a great opportunity for people that want to find investment property.
Actually there is a lot of property in Florida that can be picked up for a bargain! There is all kinds of property available for you to choose form, commercial real estate, land, homes, etc.
Fist let’s discuss what a foreclosure is, that way you can better understand why there is so much property for sale in Florida, and why its not a scam. When someone buys a home, they usually get financing from a bank or a lending institution. They then begin to make monthly payments. When you buy a home and get a fixed interest rate, then you pay the same amount month in and month out throughout the term of the loan. But there are many loans that are not fixed interest, but are variable interest rates. This means that you may start out paying small monthly payments, but as time goes on the payments will start increasing.
Many people got into these types of loans expecting the economy to continue to grow, and interest rates to remain low. And this did not happen. Now, they are left with very expensive monthly payments and no way to cover those monthly payments.
They have no other option except to declare bankruptcy. The lender has no other choice, but to confiscate the property, but this lender doesn’t want to be saddled with the property. A property takes maintenance and that means more money out of pocket for the lender.
The lender needs to sell the property off quickly and will sell it directly or through an auction, which means that they will usually sell a property off at a discount and this discount can even be up to 20% off.
This leaves you with a great number of opportunities available in Florida. And this why there are so many houses and properties at such great prices, and why it is a good idea to invest in these as an investment or just as a great deal on a home.