Foreclosure is simply the process that transpires when a property owner no longer wishes to, or is not able to, meet their financial obligations on the property. The initial start of the process is when a public notice of default is filed which can be when a owner is late on their payments by 90 days or more. This in known as pre-foreclosure and when you see a short sale listing this is where they are in the process. The end of the process is the foreclosure sale, or auction, which is handled on the county level. While anyone is able to participate in these auctions, more often that not, the bank is there to protect their interest and leaves with the ownership to the property. At the foreclosure sale all junior liens are wiped out so it is imperative you know who is foreclosing and where they stand in the line of creditors. The entire process can be very lengthy and confusing. Further, if you are bidding at these auctions you must have 100% of the purchase price in cash. It is very, very important that you do your homework on auctions or you have a very good chance of making a losing bet.
You are not going to find a home in Florida for $5,100 but you can find plenty of condominiums if you add another couple grand but you truly are getting what you are paying for in most cases. What you are probably seeing online notice of a foreclosure notice or the bid price of a lender protecting their asset at a foreclosure auction. Unfortunately, there is a lot of mis-information out there on the internet.
This is a tremendous time to be buying in Florida depending on the type of property you are interested in. If you have any interest in Palm Beach or Martin Counties I would be very happy to speak with you in greater details about your goals and see what I can do to be of further assistance, so please feel free to contact me at your convenience. I also have some great colleagues in Lauderdale so if you would like a referral just let met know.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty
It could mean anything. Some banks will price their listings at low prices, because those properties need a lot of work. Some banks will price their listings at low prices hoping to trigger bidding wars. Some banks will price their listings at low prices, because they don't know any better (this doesn't happen often--but it does happen). Some banks will price their listings at low prices, because they have a lot of distressed properties that they need to move in that neighborhood. And the list goes on. . . .
The point is that you need to do your own due diligence to determine what you think the property is worth, and then make your offer based on the price that you determined.