When an owner of a Miami homes ceases to make his monthly payments to his lender, the property starts enters in the foreclosure proceedings that will end up ultimately with the lender repossessing the home. Before the home enters in the foreclosure phase it is said to be in pre foreclosure.
Pre foreclosure are homes that belong to owners that are financially unstable and that understand that they are at high risk of loosing their home because of unbalanced budgets and weak cash flow. During this phase owners understand that they might loose their home and are attempting desperately to sale their Miami homes. Often it proves to be a tough task for several reasons :
The real estate Market in Miami is blocked due to an excess inventory or and lack of buyers
The property was purchased at a bad time and the value of the loan might be higher than the assessed value of the home.
At this point the owner wants to save whatever he can by accepting to sale his home at a lower price that he paid for it. He starts to reduce his price up to a point where is equity on the property is lost. If the owner still cannot sale he will enter a process call the short sale negotiation with the lender. The hope of the owner is to avoid to have is home foreclosed or even filing for personal bankruptcy, and maintain his credit history. Needless to say that up to this point the owner is a very very motivated seller.
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