Foreclosures in Broward County

Foreclosures have hit a 14 year low, dropping to pre-2006 levels. Many people are expecting a flood of foreclosures in the future, part of the COVID-19 fallout. That may happen, but at this time, foreclosures are at an all time low. As of June 20, 2020, there are only 40 single family foreclosures currently on the market. You can bet there are more than 40 investors out there ready to scoop up these "deals", so this creates major bidding wars on these properties.

As a Realtor since 1998, I clearly remember the great recession that began in 2006. Looking back through MLS records, foreclosures began to peak in 2009. So it's important to keep in mind that it takes the banks years in many instances, to foreclose on a property and get it ready to put back on the market. So we're likely looking at 2022 or later, before we see many foreclosure properties coming on the market.

It's certainly enticing to get the bargain of a lifetime, but buying a foreclosure is not for the faint of heart! Cash investors are in abundance and buy up these properties sight unseen. If you're the typical buyer who wants to view the house before making an offer, you'll often find there are multiple cash offers that have been submitted the day they come on the market! It's like a feeding frenzy. I believe this is due to more people wanting to invest in Real Estate, yet there are fewer foreclosures on the market. According to MLS records, 204 foreclosures sold in Broward County in the first quarter of 2020. This may sound like a lot, but compare that to the 2,617 foreclosures that sold in the first quarter of 2010. 

Of course the attraction to buying a foreclosure is the price! In recent years, banks are listing homes at current market value, with only a small discount due to their condition. Many of these homes have leaking roofs and mold, since the banks often don't pay to keep the electricity on. With South Florida heat & humidity... No A/C = a haven for mold!  I once opened the door to show a townhouse and the walls from floor to ceiling were dark green and lined with mold. It was much worse than this picture, so I chose not to step inside that property!

It's important to consider how much money you're willing to sink into a home that has suffered from deferred maintenance for years, before you jump into buying a foreclosure. Also consider that most banks prefer cash buyers.  Looking at the 204 foreclosures that sold in the first quarter of 2019, 132 of these sold to cash buyers and 54 sold through conventional financing. Only a small number sold through FHA and none sold through VA financing, as the VA is very particular about property condition.

I believe for the typical home buyer, it's best to buy a home that's in good condition and has been well maintained over the years. But I have sold many foreclosures, know the process and can guide you through to a successful closing. So if you still think buying a foreclosure property in Broward County is right for you, I can help! My foreclosure search above contains all the bank owned properties currently on the market in Broward County. The properties below are the newest foreclosures to have hit the market.