Are buying home forclosures a good idea?
What hollywoodmelody means is to be careful about buying a house “at the courthouse steps”. That’s when the trustee for the bank offers the house for what is owed to the bank – but there may be other liens owed. So that’s for people with experience, and maybe some money to risk in case of surprises. What you can buy is any of the three kinds of foreclosures – REO (Real Estate Owned, by a bank), HUD Houses, and VA foreclosures. On all three of these, you can get a title policy to ensure clear title. I’ve sold all three kinds of homes and have had the best results with the HUD houses. With the rise in foreclosures though anything is possible. Banks do not like owning houses. Good luck!
