It's no surprise that every client that I work with is interested in getting a great deal on a property.  A fair amount of them are only interested in looking at bank owned properties, figuring that is where they can get the best deal.  Recently, bidding wars have been breaking out for bank owned properties as a result of high demand and low list prices.

In order to capitalize on the demand for attractively priced properties, real estate "flippers" have returned to Miami albeit in a slightly different form. Flippers purchase properties at the daily foreclosure sales held by the Miami-Dade County Clerk of the Courts and then list them for resale on the open market.  In buildings where there have been a lot of foreclosures such as the Club at Brickell Bay (1200 Brickell Bay Drive), there are several units currently attempting to be flipped by these auction investors.  This trend has not gone unnoticed by the mainstream media.  The Wall Street Journal just published an article entitled "House Flipping Makes a Comeback" on the subject.

There are no restrictions on who can purchase property at the County foreclosure auction as long as the individual has the cash available for payment. However, the foreclosure auctions are usually attended by knowledgeable individuals that are able to navigate through the potential pitfalls of purchasing a property at auction.  At auction, the properties are sold "as-is".  This means in most cases, you won't know the condition of the property interior in advance, which could be damaged. Furthermore, there could be a tenant living in the property that you might have to evict.  Also, the property may be subject to additional liens that you will be responsible for as the new owner.  For example, you could purchase a property at auction where the second mortgage holder is foreclosing, leaving you responsible for satisfying the terms on the first mortgage. If the property is a condo, you might be responsible for paying off the balance of the monthly assessments that are owed to the association.

Starting Jan 11, 2010, Miami-Dade County foreclosure sales will be conducted via an online auction system so you will be able to bid on foreclosures eBay style.  As the number of foreclosures in Florida continues to increase, the County hopes that the online system will help to push through the backlog of foreclosures faster.  The County's official website on foreclosures sales can be found here.

At Miami Condo Shop, we are committed to helping our clients find the best properties at the best prices, so we are happy to assist you in purchasing a property at a foreclosure sale.  It is not an easy task, but we will provide you with the local market knowledge and the required due diligence so that you can bid with confidence. If you are interested in purchasing a property at the deepest discount possible, the foreclosure auction is the place for you.

Tags: bank owned properties, cash, condo, foreclosure, foreclosure auction, foreclosure sales, investors, miami condo, miami dade county clerk, real estate flippers