Real Estate Investment Advice for Buyers: Foreclosures in the Panama City Area

Foreclosed real estate property is sold at auction on the courthouse steps. The winning bidder pays cash for the property immediately after the auction. Properties cannot be viewed prior to the auction and may be completely trashed inside with all fixtures removed: you pay your money and take a chance!

As the cash must be paid immediately following the auction, conventional financing is not available to purchase foreclosed properties and the investor must have access to enough funds to pay the full purchase price in cash.

Another problem in buying foreclosed properties is the potential for competition at the auction. There will normally be a hard-core group of investors at any auction and the group are often very protective, intentionally outbidding new-comers, harrsassing them into making a bid far in excess of the actual value of the property.

Foreclosures are normally posted in the courtroom at least thirty days before the auction. This gives the potential buyer enough time to research the potential value, ensure there are no other liens or enbumbances on the property and determine the "not to exceed" price at auction. However, it also giveds the owner thirty days to settle their bill and have their property removed from auction. This can be frustrating for the potential buyer, researching a number of properties and then find most are no longer available on the day of sale.

Now for the bright side: Money is available to prequalified investors from private money lenders. Typically, the lenders will charge a high interest rate (typically 18%) but as the property will be flipped and the debt paid quickly, the actual amount of interest paid could be relatively low. While the risks of not knowing the condition of the property are great, there is the potential of buying a property at well below market value.

Click this link if you are interested in foreclosure real estate investments in Panama City, Panama City Beach or Destin Florida