Types of Foreclosures

There are three basic ways to acquire distressed property, based on where the property is in the foreclosure process. The three stages of foreclosure are as follows: pre-foreclosure, foreclosure and post-foreclosure. Brevard County Florida Real Estate:

Pre-Foreclosures

In the pre-foreclosure stage, buyers will likely be able to do the most good for the distressed homeowner and for themselves. Pre-foreclosure is where further damage to the home owner's credit rating can be forestalled and the home may be transferred at a mutually-agreed-upon price before it is necessary to get the lender and to many lawyers involved. The best way locate a property at this stage is a Real Estate agent. Properties listed as "Short Sales" are in this stage. Normally in this stage you get the best deal for your money, the best property condition, and the bank also saves money over a foreclosure or auction so everybody wins. Read about short sales here.

Foreclosure Stage

In the next phase, when a property is at the foreclosure stage, the best way to identify a potential property is through the County Clerk's office. Find out where the notices of default are filed and determine how to sort through the general index to discover pending foreclosure sales. These are the properties that are auctioned on the courthouse steps. Typically in FL the property in this stage is sold for what is owed to the bank, plus penalties, back taxes, etc.. so it's no deal.
WARNING: this is a very dangerous stage and is not recommend for anyone except seasoned investors with lots of capitol. Normally you can not tour the home, you must buy site unseen. You may buy a home with liens, building code violations and many other legal strings attached that will become your problem. We do not recommend buying in this stage at all! 

Post-Foreclosure

The post-foreclosure stage is when the lender has already taken control of the property. The home is in the possession of the lender's REO (Real Estate Owned) department and should be lien free with a clear title or will be when the the bank sells it. Banks in Brevard county almost always list Foreclosed homes on the MLS with a Realtor so contact a Realtor that deals with foreclosures to get a good foreclosure list.  At this stage you can tour the home with a Realtor, Make your offer through a Realtor, and negotiate with the Bank through a Realtor. Your Realtor can also request a inspection period so that you may have any number of home inspectors thoroughly check the property and you'll the right to cancel your contract with out penalty should you find a unacceptable defect. In this stage you normally buy the home with a clear title.