Foreclosed Property News

Foreclosed Property News

14/09/2010 - Caveat Emptor – let the buyer beware

By Eamonn Curley

If you are reading this then it is safe to assume that you have either a passing or serious interest in becoming a potential investor in distressed property Florida. Previous posts have referred to the sustainability factors in terms of job creation in a locally buoyant jobs market. An investment in distressed property in Florida and in particular in Orlando minimises risk because the local jobs market is so active. 

The numbers of people falling into arrears on mortgages according to CNNMoney.com continues to rise and stabilisation appears some way off just yet. Specifically 3.51% of borrowers were 30 days late in payments in Quarter 2, 2010, moreover personal bankruptcy filings rose 74% year on year, these are the critical statistics that arrive months ahead of the market receiving distressed property opportunities to the market.

Fundamentals are improving in the Floridian market however caution remains the byword, know who you are working with and if you are going alone then you need to have extreme patience and have lots of time and money available to assist you to complete your due diligence requirements on each distressed property in Florida that you locate.     

Foreclosed Properties we sell are sold having had a thorough inspection, repairing and replacing whatever is required, distressed property is always sold by the lender in what is referred to as in an ‘ as is ‘ condition, sometimes these are horrific, the Bank or mortgage company provide no warranty, frequently any opportunity to inspect your distressed property is restricted , remember they must obtain a certain amount from the sale of the distressed property to clear or substantially satisfy the outstanding loan. 

Mould is a significant problem as properties are often winterised in preference to a reduction in price, great care is required, building style and building codes are very different to what we are used to on this side of the world. We have seen so many times, distressed inventory that is suffering the impact of mould. These are almost always not worth what appears to be an attractive price.

Distressed property in Florida is attracting interest from northern America and South American investors and others worldwide, please deal with a company that specialises in this market and have a local Team on the ground, mistakes when made tend to be costly and difficult to recover from. Caveat Emptor – let the buyer beware.