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| Foreclosure Property: Homes
Up To 30 Percent Off |
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The key to real estate investing is acquiring property
for a low price and selling or renting for profit. Foreclosures
can offer this, discounting property as low as 30 percent
below its fair market value. Let's look at the reasons
foreclosures are so inexpensive and ways you can locate
these opportunities. |
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| A foreclosed house is property that's been repossessed
by the lender or bank due to lack of payment. Owners of
this property lose rights when they're unable to make
payments. Because the lender typically wants to recuperate
the loss as quickly as possible, they significantly drop
the cost. |
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| You can find foreclosed property through an experienced,
specialized real estate agent or in real estate newspaper,
Internet, magazine or newsletter listings. You can also
call lenders to get real estate owned, or REO, properties
lists of foreclosures. Municipal agencies like the Department
of Housing and Urban Development (www.hud.gov), who sometimes
host foreclosure auctions, and Fannie Mae (www.fanniemae.com)
both list foreclosed homes for sale. Because the lender
must file a notice of default with the county clerk, you
may also search public records. |
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| Legal requirements and procedures differ from state-to-state.
It's wise to use a trustworthy agent because some sellers
refuse to work with unrepresented buyers. Acquire financing
and loan qualification ahead of time to ensure a smooth
offer procedure. When you find property you're interested
in, tour it and schedule a thorough, professional home
inspection if the seller approves. Frequently, with tight
time demands, buyers can't get a proper inspection before
purchase. While foreclosed homes are often in good shape,
the previous owner may not have been able to conduct routine
maintenance. Finally, compare the selling price with other
comparable homes in the neighborhood. |
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| Foreclosed property is often hard to find and purchase
simply because the deals are so great and popularity is
so high. Expect the process to take some time and watch
out for any red tape like outstanding lien issues. While
a challenge, the payoff is golden. |
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