Forclosures

FORECLOSURES

Foreclosure is the legal process in which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of the mortgaged property and selling it. Default is triggered when a borrower misses a specific number of payments or fails to meet other terms in the mortgage document. Foreclosed properties offered by banks and lenders, are sought after deals as the they are eager to recover their losses and not incur additional expenses.

The Moratorium and Forbearance programs of 2020 and 2021 where homeowners could temporarily pause or reduce their payments, has come to an end. Along with rising ownership costs, some people have been unable to keep up with the financial demands of property ownership. Florida has been reported to be the state with the third greatest number of foreclosures in 2023.

The phenomenon of wealth migration to Florida is creating opportunities for rehabbing and reselling foreclosure properties. With a steady influx of high earning professionals, wealthy retirees, and international buyers, all properties are in high demand. Buyers can accelerate their equity gains or re-sell for a profit after acquiring a foreclosure property and renovating at a lower cost.