If you’re like many savvy homebuyers, you know that you can get a great deal on buying a foreclosure. But how does it work if you want to buy a foreclosure in Lake City?
How Does Buying a Foreclosure in Lake City Actually Work?
When a lender forecloses on a property, they seize possession of it from the owner because the owner has stopped making mortgage payments. Lenders call these properties REOs, which stands for “real estate owned.”
When a property goes into foreclosure, it’s auctioned through the courts. When the bank receives the deed, it’s only because nobody showed up to bid the minimum amount of the existing mortgage; the lender is saddled with the property because nobody wanted to pay off the mortgage to get the house.
Why Are Foreclosures Often Cheap?
Many people whose homes are foreclosed stop making payments after they’ve already chiseled away at the principal, but that’s not necessarily why foreclosures are cheaper than homes that haven’t been foreclosed.
Most foreclosed homes are cheaper because banks are in the money business, not the real estate business. If they’re losing money each day they own a property, they’re going to want to offload it quickly. To do so—and remember, nobody showed up to bid the minimum bid on the courthouse steps—lenders will often price the home below its market value.
Are You Buying a Home in North Florida?
When you’re ready to start exploring Florida land for sale or homes for sale in Lake City, we’re here to help.
Call us at 386-243-0124 or if it’s easier, contact us online. We’ll begin searching for your new home right away.
You can also explore these links to start your search:
- Water Front Residential
- Water Front Land
- Bank Owned & Foreclosures
- Short Sales
- Paved Road Frontage
- Non Deed Restricted Land
- Wooded Oak Tree Land
- Land for Land Home Combo