According to a recently released report, prices of homes in Miami fell by 2.6% from August to September, 2008; and fell by 28.4% when comparing September 2007 with September 2008. While this is not a good sign for home owners, people who have the capital are looking at this to be a good period to buy residential real estate.

Home buyers are looking at Miami foreclosure properties as a viable alternative primarily due to the markdown on the market price of the homes. In buying foreclosure affected homes, saving have become the order of the day. It is not just the investors who are looking at Miami foreclosure properties with interest; these homes have also grabbed the attention of many first time home buyers.

Foreclosure homes include homes that have been foreclosed upon by banks/lenders and by different government agencies. Homes foreclosed upon by banks are referred to as Real Estate Owned (REO) homes, and homes that are foreclosed upon by different government agencies end up selling as HUD foreclosure properties.

Buying these homes involve different procedures. To buy a HUD foreclosure home you are required to place a sealed bid through an HUD approved realtor within the ?offer period?. The home generally goes to the highest bidder (preference is given to bidders who wish to live in the house).

To buy REO homes, you would either have to deal with the lender/bank or a real estate agency/agent that the bank/lender has appointed to sell its foreclosed properties. The decision making, however, rests with the lender/bank.

Remember, since there is no scarcity of foreclosure properties in Miami, it is best to tread with patience.