What is the process of buying foreclosed homes?
When you buy a foreclosed home, you’re cashing in on a home someone was no longer able to pay for. Foreclosures are difficult–both to locate and to execute the transactions–but the potential to turn them over for a tidy profit may be there. Understand that foreclosure means that because a home owner has become unable to pay the mortgage, the lender takes back the property. The legal steps involved differ from state to state. Search for foreclosure listings in real estate magazines, newsletters, newspapers and Internet search engines. Call lenders for real estate owned (REO) properties lists of foreclosures. Government agencies such as Fannie Mae (fanniemae.com) and the Department of Housing and Urban Development (hud.gov) also advertise foreclosed homes for sale. Check public records for other leads. A lender deciding to foreclose must file a notice of default in the local county clerk’s office.
Here’s a good article on it Buying Foreclosures – How to Buy Foreclosed Homes Foreclosed homes are a great investment opportunity, and there are many of them on the market right now. Click on the free trial button below to find foreclosure homes in your area. Foreclosure Homes 101 A foreclosure home is one that is currently being foreclosed upon by a bank. Foreclosure is a legal process through which the homeowner’s property rights are terminated, usually due to a failure to make the mortgage payments. Typically, the bank who owns the mortgage will try to sell the home as quickly as possible, sometimes through a public auction. To secure a quick sale of the foreclosure property the bank will often sell at a low starting price as well … and this is what get investors excited about buying foreclosure properties in the first place. Buying Foreclosure Properties So, a foreclosed home is basically a property that a bank wants to sell quickly, and is thus a good investment opportunity. But
Finding foreclosed homes deals requires one to know where to find the homes, and you should use professional realtors to identify crucial foreclosure deals. The internet might be an easier resource for foreclosures but some information could be outdated or incorrect while some of the homes might not be listed. A realtor would be a better resource and you can subscribe to latest MLS listings, thus get latest information. If you are searching for homes from an agent, you might be paying commissions to somebody with vested interest. Work with your realtor with the objective of purchasing the property. You also need to act fast because foreclosed or foreclosure homes whose purchase is long due face a penalty of about $25 to $200 per day.
