5 Things to Know About Foreclosure Properties
WHAT EXACTLY IS FORECLOSURE?
A foreclosure is a home that has had an action taken against it by a bank or mortgage lender when a home owner has failed to keep up with payments for quite sometime. The cheap prices of such places appeal to both home buyers and real estate investors alike. When you buy foreclosed homes, you are buying into a property that not only saves you money but can be flipped if you decide to put it on the market in the future.
If you are thinking of buying a foreclosure, here are 5 things to know before you dive in head first. From the benefits of buying a foreclosure to where to locate them, read on to learn more about foreclosure purchasing…
1.THE BENEFITS OF A BUYING A FORECLOSED HOME
A foreclosure, even a very, very nice property, can be bought at well below market value. The key is staying on top of the deal and acting quickly when interested. If you are a home owner, you can own a much nicer house for your budget. If you are an investor, you can even buy homes to fix up and then sell for triple the price.
2. WHERE CAN I FIND FORECLOSED HOMES FOR SALE?
Foreclosures are literally everywhere. In your local paper and on signs down the end of your block. Of course you can check the MLB listings out for foreclosures too but you can also find foreclosed homes at places such as these…
– Foreclosure auctions near you
– Real estate wholesalers
– Direct mail
– Brokers
– Investor groups
– Investing webinars
– Referrals that come from lawyers, realtors, mortgage brokers and title companies
3. HOW TO HANDLE A FORECLOSURE
A real estate broker can help you to best handle a foreclosure. This saves you the trouble of understanding the fine print. It also helps to make sure that you get the best deal possible. Why pay more when you don’t have to?
4. THE DIFFERENCE IN A SHORT SALE AND A FORECLOSURE
A short sale is a sale that can be made before a foreclosure comes to pass. This is a time when both the borrower and lender agree on this type of sale. A foreclosure is when the home’s mortgage payments are so overdue that this type of sale is no longer possible. In a foreclosure, the lender just wants to make as much money back as possible so that they are not left holding nothing in the end.
5. BUYING A FORECLOSED PROPERTY
When buying a foreclosure, you may need to put in a little work to bring the home up to your standards depending upon which property you choose. But even still, you will likely still be way under budget even with repairs to complete. From first time homes for new families to the perfect property for real estate investors to cash in on, foreclosed homes are a great way to get the most bang for your buck and walk away with a very nice home for next to nothing.