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A Brief about Foreclosures in Tampa

Foreclosures in Tampa are still continuing to pile up. With prices of homes much lower than what they were a year ago, and with widespread speculation about some relief in the near future, an increasing number of people are looking at buying homes again. Foreclosure homes are particularly being targeted because of the markdown in their prices.

A home can be foreclosed upon by a government agency or the lender through whom the mortgage to buy the home was taken out. The government would foreclose on a house in lieu of unpaid taxes or fines by the home owner. Banks/lenders would foreclose on a house because of the home owner’s inability to pay off the mortgage.

HUD foreclosures have to be bought through a bidding process. These bids need to be placed through an HUD approved real estate agent. HUD foreclosure homes are known to offer some great deals, especially if you do not mind buying a slightly run down house and then fixing it up.

A home that is being foreclosed upon by a bank can be bought at different stages of the process. You can first buy the home directly from the home owner during the pre foreclosure stage. A home owner in pre foreclosure would generally want to sell the house so that the debt in question can be paid off. While buying a pre foreclosure home, it is important to check if any other liens or unpaid property taxes are linked to the home.

After pre foreclosure, the house is put up for sale at a foreclosure auction. You would need certified funds (cashier’s check or cash) to buy a home at an auction. Since this acts as a deterrent for many home buyers, it helps in reducing competition.

After the auction, the title/deed of the home is transferred in the name of the lender. During this stage, the home is generally referred to as an REO (Real Estate Owned) home. While some banks use the help of real estate agents to sell their foreclosure homes, some others do it themselves. Buying a home from a lender is often considered a safe option because they are known to take care of previous arrears like unpaid property taxes and secondary liens when they foreclose on the house.

Inspecting foreclosure houses before you buy them is of primary importance. You should know in advance how much money you might have to spend in fixing the house you buy.

Since there is no dearth of foreclosure homes in Tampa, do take you time and view as many houses as you can.

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