As an example, if a property is subject to a first-priority purchase money mortgage, a second-priority home equity mortgage, and a homeowners’ association lien, it is very likely that a foreclosure filed by the first-priority mortgage holder will eliminate the lien of the second mortgage and the homeowners’ association lien.
However, this certificate does not include the warranties normally included when purchasing a property from a third party and receiving a warranty deed.Ī foreclosure action and sale may and typically will eliminate the foreclosing lien, together with any inferior liens encumbering the property. When purchasing a property in foreclosure, the local clerk of court will issue a certificate of title, therefore evidencing the winning bidder’s title to the property.
Although properties may be purchased at extremely low prices at foreclosure auctions in Florida, extreme care must be taken when doing so. Although some of the major players in local real estate investments are groups of foreign investors, often investing through large corporate investor groups, many individuals have decided to give real estate investments a try as well.Ī popular method of purchasing investment properties at a very low price is to do so at a foreclosure auction sale. In the last few years, a large number of real estate investors have flooded the real estate market in the State of Florida in attempts to take advantage of a slowly improving real estate market.