Bank foreclosed Miami Homes are also called Real Estate Owned (REO) foreclosures. When property owners are unable to make payments on their bank-held mortgage loans, the bank forecloses on the property in an attempt to repossess it.
When a homeowner defaults on his or her mortgage loan, the lender may actually take ownership of the property or may have the property sold as a means of paying off the debt. When foreclosure proceedings are complete, the homeowner would have lost all rights to the property. This has a negative impact on your credit score among other devastating effects.
Experienced investors know that while bank foreclosures in Miami, FL are being processed, owners may sell their homes in order to avoid foreclosure. This period is referred to as the pre-foreclosure period. Often times, owners are willing to negotiate a lower price for the sale of their home during this period so that they can avoid damage to their credit score. In the end, the investor gets value pricing while the seller avoids foreclosure and maintains their credit score. This is usually the best option for both parties.
If the home is not sold before the foreclosure is processed, the title of the bank foreclosed home is transferred to the bank. Banks, however, would rather not own foreclosures in Miami or any other area of the country. They are in the business of dealing with money, not real estate, and bank foreclosures are a burden on banks for several reasons:
- They are expensive to maintain – The bank must pay taxes, insurance, maintenance and security for their bank foreclosed homes. The longer they hold on to these homes, the more money they lose.
- The bank looks bad – Having a large inventory of bank foreclosed homes on their books highlights their bad lending decisions.
- Recover money – The bank needs to recover the money lost on bank foreclosures.
Due to these reasons, banks try to get rid of bank foreclosures in Miami as fast as they can. This is one way savvy investors can capitalize on these properties. It is often possible to negotiate deals where you can buy bank foreclosed homes or government foreclosures at a price that is well below market value.
With the incredible opportunity these foreclosures in Miami present, you need a realty company that understand this marketplace and the local market.
Buy Foreclosed Properties as an Investment through Bustos Realty
Buying foreclosed properties is relatively risk free, as all other liens have already been eliminated and the bank has a clear title to the property. When working with Bustos Realty, we will make sure that your property is inspected beforehand by the best Inspectors in the business and unlike many foreclosed Miami homes, you do not get stuck with additional costs or repairs.
Contact Bustos Realty for help with investing in foreclosed Miami homes.