By David Faulkner

The idea Life that life’s a beach may seem like a fantasy to most people, simply because a life at the beach is simply beyond the means of most of us. But for those who are willing to make an effort to find their perfect place in the sun, searching through lists of foreclosure properties in the hopes of finding beachfront foreclosures can mean a dream come true. Beachfront foreclosures do exist, and for those willing to be patient until one comes onto the foreclosure auction market, can be the opportunities of a lifetime.

Discounts To Market

There is no difference between a beachfront foreclosure and any other kind; all foreclosures happen when a bank or other lending institution assumes possession of a name after its owner has failed to stay current on the mortgage payments for a long enough time. Like all foreclosures, beachfront foreclosures will usually sell for a price significantly discounted to their fair market value.

Because banks holding title to beachfront foreclosures are motivated to have them reoccupied as soon as possible, buyers can often purchase beachfront foreclosures for surprisingly low prices. The banks or lending institutions benefit from having the homes reoccupied because they no longer have to pay to insure or maintain them, and buyers benefit because they can get into beachfront homes which would otherwise be beyond their means.  {continued}

When To Buy

While it’s possible to buy beachfront foreclosures at any time between preforeclosure and the foreclosure auction, the time to act is really during the preforeclosure period. During preforeclosure you will be able to negotiate directly with the home’s current owner, and have an opportunity to get a really close look at the home’s condition. You may get a better price by dealing directly with the owner, because he or she will probably be anxious to avoid having a foreclosure on the credit history.

You can learn what beachfront foreclosures are available by going over the foreclosure listings in the beach communities where you would like to live.

If you have the financing in hand and are prepared to pay cash, you can bid on beachfront foreclosures when they go to public auction. Doing so, however, may mean that you have to buy the property sight unseen unless it is in an area close to you. You must be prepared to pay cash if you are the high bidder on the beachfront foreclosure, so it is always a good idea to view the property in advance and make sure it is worth your bid.

You do not want to buy beachfront foreclosures which will end up costing you more money in repairs than the amount which you save by getting them at a discount to market.

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