Jan 10, 2008 7:36 pm US/Eastern
High Foreclosure Rate Has A Silver Lining For Some
MIAMI (CBS4) ―
As Miami Dade and Broward counties hit a record number of foreclosures in 2007, many have found it tough to find the silver lining in South Florida's dismal housing market.
But not all.
Investors, both old and new, say there's lots of opportunity for homebuyers, but the opportunity is not without risk.
At a recent foreclosure auction, Cecilia Hawkins proceeded cautiously as she learned the ropes.
"Well I noticed that they're offering good prices and you just need to know the system," said Hawkins.
Seasoned investors say that's the key for newbies like Hawkins, or any one, just getting started in buying foreclosed properties. Those in the know say buyers can save about 30-percent on the price of a home with foreclosed properties, but there are some drawbacks.
"That world inside there is very competitive," said Julian Dominguez, who's been investing in foreclosures and guiding others through it from more than 20 years. He said many investors don't like to see the inexperienced, like Hawkins, at the auctions.
"And their intent would be to raise your price so that you will not come back again," said Dominguez.
There are lots of pitfalls that buyers need to research before purchasing a foreclosed property, said Dominguez, including checking to see if the property has any outstanding tax bills or condo leans that the buyer would be responsible for paying. Some properties have illegal additions that will cost buyers in construction fees and citations, and others have more than one mortgage the buyer may not be aware of.
"You have to be careful because if you buy thinking it's a first, and it happens to be a second, you just assumed the first together with that," said Dominguez.
He adds buyers also gamble at auctions because they never know what the home looks like on the inside. But if they insist on going, Dominguez said they should go with a firm plan in mind.
"There should be a top number in which you would tell yourself if I walk away and didn't get it at this number I'm happy, because sometimes you will very easily be pushed higher than that number." said Dominguez,
Click Here for listing a foreclosed properties up for sale in Miami Dade County.
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