Foreclosed Homes for Sale - How to Find Listings of Home Foreclosures
Foreclosed Homes - Opportunity (But Be Cautious)
In today's current economic environment consumers must take advantage of opportunities that are presented to them. When looking at one particularly slow to recover, part of our economy, one must take special note of the real estate market. In particular, foreclosed homes.
Foreclosed homes present an opportunity for prospective homeowners to take advantage of very low borrowing costs and equally important, very low housing prices. The current situation of more than 1.5 million foreclosed homes on the market creates opportunities for value shoppers to get in on the ground level. To view the statistics in your State visit the following site and hover your mouse over your state: RealtyTrac
This will give you a good idea of how robust or thin your current local economy is with its supply of homes in foreclosure.
Now that you are interested in buying a foreclosed home, how do you go about doing it?
There are 3 ways to buy a foreclosed home:
- You can try an purchase the home from the homeowner directly before they are officially foreclosed on(this is very risky and seldom effective).
- You can try your hand at a very competitive and fast moving auction. This is also very challenging.
- You can enter the REO market. This is industry lingo for the bank owning the property (Real Estate Owned).
This final option has the advantage of allowing you to get a title clear of liens since the bank will do an extensive title search on the property and it will also allow you to find financing. Make sure you budget for repairs as these foreclosed homes are sold as is.
One final - but perhaps overlooked - advantage of going through the REO market route of purchasing the home in foreclosure is that the property owner is out of the picture and has already been evicted so you won't have to deal with that yourself.
When readying yourself for purchasing a foreclosed home, be prepared to pay to have the home inspected. The reason this is important is because while you may be saving several thousands of dollars by taking on a home that has been abandoned by it's previous owner, you may also be inheriting the problems they may have neglected. Examples may include a termite infestation, a failing roof, or poor plumbing to name a few. Be prepared to walk away from the deal if the problems outweigh the benefits.
To better prepare prospective foreclosed home buyers for the disadvantages involved in the process please note the following contribution: Disadvantages of Buying Foreclosed Homes
One option for this process through Fannie Mae is called HomePath (a great place to find foreclosed homes for sale). Download the free eBook "A Buyer's Guide to HomePath" at the button below.
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