Is a Foreclosed Home a Good Investment for First-Time Buyers?
Reader Question: Is a foreclosed home a good investment for a first time home buyer? Will the buyer gain much equity in such a home? Foreclosed homes are sometimes a good investment for buyers, because you can often get them for less than market value. But I’m not sure I would recommend foreclosure buying to a first-time home buyer. The process of purchasing a foreclosed home can be complicated and time-consuming. If you decide to pursue this, I would recommend hiring a real estate agent who is familiar with foreclosures. Another thing to consider is where and how the home is going to be sold. Many foreclosure homes are sold through a real estate auction, because the lender wants to sell the property as quickly as possible. In such cases, you would need to pay for the home on the spot, during the auction. So you would need to have your financing taken care of going into the auction. If the home does not sell through an auction, and the bank is essentially playing homeowner, you can mak
