how to buy foreclosed homes in florida

How to Buy Foreclosed Homes in Florida

Post Author:



Date Posted:

March 3, 2023

Share This:

Dreaming of owning a home in Florida but worried about the price?

A pre-foreclosure or foreclosed property may be a good opportunity for you. Bank-owned properties can be cheaper than the current market value. Banks do not manage properties – they definitely want the real estate-owned (REO) property off their books.

Florida tends to have a competitive real estate market. Plus, there is no state tax. As a result, Florida homeowners benefit from low property taxes. In addition, the sunshine state has an average of 230 days of sunshine per year.

Buying a pre-foreclosure or REO home in Florida might be an excellent choice for you. Read on to learn more about how to buy a foreclosed home in Florida.

Where Do You Buy Foreclosed Homes in Florida?

The foreclosure option is attractive for homebuyers and real estate investors. This is a challenging process. Performing your own due diligence is necessary.

Comparison shopping, title searches, and researching loan opportunities are essential. Do you feel discouraged about the home interest rates? A fixed-rate mortgage is an option.

Meanwhile, you can find foreclosed properties at:

  • Foreclosure lists on various bank websites
  • Property owners motivated to sell in pre-foreclosure
  • Florida Home Auctions
  • Bank-owned/REO properties

If you decide to buy a foreclosure from any of the above options, it’s a great opportunity.

Each foreclosure process has different procedures. A seasoned real estate agent can assist you in the foreclosure process and answer all your questions.

How to Buy Foreclosed Homes in Florida

According to Attom Data, a real estate data company, Florida began the foreclosure process on 22,968 households in 2022. Before pursuing one of these foreclosure options below, ensure you have your financing in place.

At The Associates Home Loan of Florida, Inc., we have multiple loan options for you. Being approved for a loan will prepare you to negotiate an offer for your desired property.

After securing financing, you have the following choices in purchasing a foreclosed property:

Pre-Foreclosure Homes

A pre-foreclosure homeowner may be open to selling directly to a home buyer. Your offer should include outstanding liens and past-due mortgage payments.

A real estate attorney can help you with mortgage documents and your offer. Be prepared for any changes. The homeowner can opt for a loan modification, short sale, or enter into an arrangement to keep their home.

Most Florida homeowners will try to prevent their property from being foreclosed at all costs. Because of exhausting all options, the pre-foreclosure process can take up to two years or longer.

Bank Foreclosures

A bank foreclosure in Florida goes through a judicial process. A judgment is required for a lender to sell a foreclosed home. Depending on the homeowner’s defense, a Florida foreclosure can take several months.

There is a 10-day redemption period before filing a certificate of sale. Contact a real estate attorney to see your options for purchasing a foreclosure before the auction block.

Homes Sold at Auction

Bank foreclosure is sold to the highest bidder at an auction. It can be a risky way to purchase your home. It’s possible the condition of the property may require significant renovations.

These Florida home auctions are usually conducted at the county courthouse or a government building. Call or check your local county courthouse for more information.

HUD Homes

A HUD home is a foreclosed 1 to 4-unit under the Federal Housing and Urban Development. An FHA-Federal Housing Association borrower previously financed HUD homes.

Contact a HUD-approved real estate agent, and they will walk you through the HUD process and requirements.

Pros of Buying a Foreclosed Home

Depending on your criteria, purchasing a foreclosed home may have more pros than cons. The pros of buying a foreclosure home are:

  • An expedient way into home ownership
  • Foreclosed homes typically are below market value
  • Making a foreclosed home a profitable investment property

As opposed to a usual 30-45 day escrow, purchasing a home at a public auction is more expedient. The certificate of sale will be issued ten days after you purchase a foreclosure home at a Florida home auction.

Cons of Buying a Foreclosed Home

Foreclosures can be expensive depending on the repairs and the cost of your bid at the auction. The following cons might be a deal breaker:

  • Inspecting the property may not be permitted
  • Renovations and repairs may exceed your budget
  • Your budget may not include liens and a second mortgage
  • Cash or upfront payment is required to bid at public auctions

Ultimately, buying a foreclosure requires a solid plan for costly repairs, liens, and second mortgages to be paid. It may be worth the effort if foreclosure is right for you.

Tips for Buying a Foreclosed Home

With all the benefits of pre-foreclosures and post-foreclosure options, having a realtor to guide you is recommended. A real estate professional can give you tips for buying a foreclosed home and answer all your questions.

Purchasing a foreclosed home can be overwhelming, but here are some tips to keep in mind:

Inspect the Property

Having a well-planned repair and renovation budget in place is the foundation of your foreclosure buying experience. Inspecting the property is usually a benefit available to you with pre-foreclosure opportunities.

The homeowner will likely give you a tour of their home and possibly allow you to have it professionally inspected. It is not permitted to inspect bank-owned properties prior to a public auction.

Have Financing Ready

Depending on your financial situation, cash buyers must have proof of funds to be presented to the property owner.

If you are not a cash buyer, we can help. For your financing needs, contact us at the Associates Home Loan of Florida, Inc. Our knowledgeable staff can assist you with funding a foreclosed home.

Secure Your Financing Today

You can get more information about financing a bank-owned property from us. When looking for a foreclosed home in a desirable Florida market, you can expect a lot of competition.

Be ready to give your best offer at the next public auction or pre-foreclosure motivated seller. Apply for a loan now!

Recent Posts

  • pros and cons of bridge loans

The Pros and Cons of Bridge Loans

It should come as no surprise that the most significant concern today for home buyers is affordability. Inflation has caused rising home prices, and many feel that owning a home is untenable, and mortgage interestRead More