How to Buy Jacksonville Foreclosure Homes
You can not pick up a newspaper or turn on the news lately without hearing about the sub prime mortgage meltdown and the impending surge of home foreclosures. Locally, the number of Jacksonville foreclosure homes is going up. If you think you might be interested in buying foreclosure homes, here are some tips to help you find the homes.
Pre-Foreclosure | Short Sale Homes in Jacksonville
Right now many homeowners are under stress from their adjustable rate mortgages coming off of the teaser rate. For example, if a homeowner took out a $300,000 2/28 loan two years ago, their monthly mortgage payment might have been as low as $1,264 for principle and interest. Today, this loan might be readjusting to $1,995 for principle and interest, an increase of 58%
The homeowner unable to make this larger payment starts to fall behind with payments and the foreclosure process starts. This is an opportunity for investors to buy the house in preforclosure. If you have ever wondered about those signs around town advertising “We Buy Houses Fast!” it’s to find people who need to sell because they face foreclosure. During this time, it may be possible for the investor to buy a home in a short sale. A short sale is when the bank (the mortgage holder) agrees to sell the property to an investor for less than what the bank is owed for the mortgage.
Why would the bank take less than is owed to them for the house? If the bank is convinced that homeowner will no longer make payments on the house and is walking away, the bank knows it will spend thousands of dollars during the next year to complete the foreclosure. In the end, the bank will own the house and be forced to sell the foreclosed house, spending even more money. The challenge is to have the bank convinced they are better off selling now to an investor then going through with foreclosure.
Finding Short Sales In Jacksonville
I set up a search on kristafracke.com to help clients find homes going into foreclosure. This home foreclosure page shows both homes in pre-foreclosure and foreclosed homes.
If you need to see any of the homes let me know.
More Information
If you would like more information on short sales, I would look at this real estate investing website They have an excellent podcast on being a real estate investor.
