Investors Consider Florida Home Mortgages on Foreclosed Properties
As you go through the Florida mortgage process and consider home buying options, don’t forget about deals waiting to be uncovered.
There are more properties available this year, for example, than almost ever before. How come? Because foreclosures experienced a startling rise in 2006 - up 72% since the beginning of 2005, according to RealtyTrac. The increasing rate is unveiling a different breed of real estate flippers, those looking to turn a profit on investment property purchased up to 20% below market value.
“In the midst of a slowing real estate market, rising interest rates and salaries that are not keeping pace with standard of living increases, we have seen a dramatic increase in foreclosures nationwide,” said David Nilssen, CEO of Guidant Financial Group. “This is not great news; however it does create opportunities for savvy investors looking to obtain properties at below market value.”
Beware of Florida mortgage loan risks on foreclosed properties
Nilssen cautioned that the foreclosure-investing process can be risky. Be wary of the risks as you consider a Florida home mortgage for such a purpose.
“A great deal of research should be done to ensure that the investment is sound and clear of additional encumbrances that could affect the deal.”
Information about foreclosured properties is found in many places, including foreclosure websites, legitimate third-party foreclosure listings, private banks, auction houses, and local tax-collection agencies. The number of foreclosure listings increases every day, with the rise forecasted to continue.
More foreclosures emerge as interest rates climb and the 30% of national and Florida home loans that were originated with adjustable-rate mortgages significantly increase. Those faced with increasing mortgage payments are attempting to liquidate in a market where housing inventory is increasing and the buyer pool is shrinking.
The softening market and the rise in interest rates and accompanying payments may spell disaster for many people who could be forced to sell at a loss out of necessity. Yet, as with most cases in investing, one individual’s loss is another’s gain. As homes become available at up to 20% below market value, large profits can be realized by savvy investors.
Keep this in mind as you navigate the real estate landscape. You can complete the FREE FORM above in order to speak with a Florida mortgage broker about your options.
