What is a Foreclosure?

what is a foreclosure - north florida land for sale

Many people searching the North Florida real estate market are looking for foreclosures because they’re often priced lower than other homes with similar features—but is it really worth it?

A foreclosure is what happens when a homeowner no longer makes mortgage payments on a house and as a result, gives the house to the bank. It’s not necessarily that the bank “took” the property back; they just foreclosed on the mortgage and seized the home. Sometimes homeowners voluntarily deed the house to the bank to get out from under the mortgage; in other circumstances, the homeowners simply stop making payments and the bank seizes it as compensation for what the owner owed on his or her mortgage.

Should You Buy a Foreclosure?

Typically, foreclosed properties are sold as-is. The bank isn’t going to make any repairs, and in some cases, you can assume that the former owners didn’t have the money to keep up on home maintenance because they didn’t have the money to make their mortgage payments. The house could have serious issues, so as with any other home purchase, you’ll want to have a home inspector come check the property before you agree to buy it.

In some cases, foreclosed homes have been sitting vacant for months… or even years. You could have to deal with mold, broken pipes, or pest infestations; thieves or vandals may also have broken into the house and done some damage.

You may also have to deal with debt connected to the home, such as unpaid tax obligations, construction loans, or old home equity lines of credit.

The upside? You can often get great deals on foreclosures. For many people, that means buying a larger home in a location that they couldn’t ordinarily afford—and that can be a huge benefit to purchasing a foreclosed home.

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:

What is a Foreclosure?