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Florida Condo Foreclosures - Considerations
Inventories of foreclosed, pre-foreclosures and short-sales remain at record highs in Florida, particularly in the large markets of Miami, Naples, Fort Lauderdale, Jacksonville, Sarasota and Orlando. Many investor groups, individual investors and primary home buyers are giddy with the possibility of purchasing condos and a fraction of their values during the heady market that existed up until 3 years ago.
As you look at properties and consider various purchasing strategies, you will want to consider the following:
- View the property first-hand and obtain an inspection report from a qualified technician to surface any potential costly repairs.
- Obtain a Wood Destroying Organism report to determine possible termite and ant infestation along with structural issues related to dry rot.
- Determine the financial condition of the condo association. Many condo associations are in poor financial condition due to many homeowners not paying their association dues. Eventually, short-falls in their budgets will be made up with general assessments against unit owners.
- Determine whether you can obtain a mortgage on the property. Some lenders are avoiding new mortgages in complexes with high levels of vacancy or renters.
- Find out the ratio of renters to owners in the condo complex.
- Obtain a copy of the insurance policy that the association has on the condo complex to assure premiums are paid and coverage is sufficient to cover a significant claim.
- If a purchase offer is accepted by the seller, obtaining title insurance should be considered essential to assure clean title transfer and to identify any outstanding liens on the property.
- Do not accept oral representations for any aspect of the transaction.
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