When it comes to buying a foreclosed property in Panama City, Florida, there are several risks that buyers should be aware of. The foreclosure process in the state of Florida requires a bank or mortgage lender to file a lawsuit in order for them to take ownership of the property. Once the bank officially takes ownership of the property, it is considered an REO (Real Estate Owned) and is normally put up for sale by a real estate agent. These properties are also known as “sales of distressed properties” and can include properties that are sold from probate, sales of tax deeds, properties with forfeiture, including IRS sales and sheriff's sales.
The lender will normally accept offers from prospective buyers for a designated period of time. When it comes to buying foreclosed property in Florida, it's helpful to understand the stages of the foreclosure process. The first stage is when the property is put up for sale at auction. This is a public foreclosure sale conducted online by the county clerk's office (through a public online auction in accordance with Florida statutes) in which the property is offered to the highest bidder.
If the bids don't cover the foreclosure judgment, then the property will not be sold at auction. In this case, the bank will put the property up for sale and accept offers from prospective buyers. There is usually a lot of competition for foreclosed homes, so buyers should be prepared to make a higher offer than other buyers if they want to keep a certain property. It's important to note that bank-owned or real estate (REO) properties are actually foreclosed properties that weren't sold to a third party at a court auction. These properties can be obtained for cents on the dollar, but buyers will normally be required to pay cash in advance for the property. From an expert's perspective, here are some key points to consider when buying foreclosed residential real estate in Florida:
- Be wary of any Florida real estate agent who is eager to help you purchase one of these “great deals”.
- Make sure you understand all of the legal implications of buying a foreclosed property.
- Be aware that there may be hidden costs associated with buying a foreclosed property.
- Be prepared to make a higher offer than other buyers if you want to keep a certain property.
However, it's important to understand all of the risks associated with this type of purchase and make sure you are fully aware of all legal implications before making an offer.
