Some might view the large number of foreclosed houses in the South Florida area as a golden opportunity to purchase a new property; however, the decision to dabble in foreclosure bidding is not one to be taken lightly. While there is definitely an opportunity to purchase a property for less than real value through auction, foreclosure purchases are a tricky business. Different laws apply to foreclosure purchases, and these laws do not always work in the buyer’s favor. It is, of course, true that some individuals and groups have walked away from auctions with houses worth far more than they paid for them, but without an extensive knowledge of the laws governing foreclosure purchases, there’s also a chance that your bid will end up being a disappointment rather than an asset.
Buying a home is always a big investment, and most people entering into such an investment want to make sure that it is a sound one. When purchasing real estate in the conventional manner, the buyer usually has plenty of time to view and assess the property in person and have professionals inspect the property to make sure it is a worthwhile investment. Foreclosure purchases are different. Since they happen very quickly, the buyer may not have time to thoroughly examine the property and end up with less of a deal than was imagined. Additionally, foreclosure bidding requires having funds on hand very quickly, including a “good faith” deposit to be paid up front that may be forfeited if the buyer backs out.
Though there are certainly pitfalls to be aware of when bidding on or purchasing a foreclosure, there are also undeniable benefits; one of the key factors in reducing the risk in this process is the guidance of an experienced real estate lawyer. Since 2004 Chluski Law has been successfully helping clients in all areas of real estate law. Not only can we help you navigate the choppy waters of foreclosure bidding, we can also give you comprehensive advice on making sure your purchase is a wise investment. If you have been thinking about buying a foreclosed property in South Florida, please give us a call at (561) 931-0439.
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