The Real Deal Miami

Preforeclosure offers bargain window

August 18, 2008 11:29AM

Investors with good timing and an eye for a deal might consider
purchasing preforeclosure properties — homes about to be taken over by
banks for late payment, but  which haven’t officially passed into the
loan holder’s hands. Borrowers who are 90 or more days late on their
mortgages often slash their asking prices to avoid ruining their
credit, opening the door to big discounts. In a market of plummeting
home values, though, many borrowers in default owe more than their
homes are worth, meaning a short sale is a more likely option, says
Miami title attorney Jeanette Escudero.