Foreclosed homes can save you a ton of money on your purchase price if you are seeking a home as a homeowner.
If you are an investor, which this site is geared towards, you can literally buy foreclosed homes for pennies on the dollar!
That is, if you have the right connections and/or the right foreclosure listings or REO property listings.
On the flip side, without the right connections or listings, you are going to spinning your wheels a lot!
Savvy investors know where to find the sweet deals that everyone craves!
That is what makes them savvy investors.
Someone once said, "Knowledge is power!"
In this instance, the knowledge of kowing where the most lucrative deals are hiding is crucial.
If you want to join that elite team of real estate investors who seem to turn everythng they touch into gold, keep reading.
The thing with foreclosures is that you have a bevy of seemingly never ending options.
Here is a pretty comprehensive list of places you can purchase foreclosed homes from.
In many locales, you can buy foreclosures for as low $5000.00. With the plethora of properties on the market finding deals has become a cinch. But with anything that involves an element of risk, you need to consider the facts about buying foreclosed homes before you buy.
What exactly are foreclosed homes? In brief, these are properties in which owners have failed to make payments on the home loan or mortgage and at some point legal action is taken against them.
If the homeowner cannot bring the home loan current during the specified window of opportunity, they are eventually foreclosed on. Meaning, the bank or lender legally repossesses the home from the owner.
One key point that buyers of foreclosed homes need to be aware of; in quite a few states, owners of foreclosed homes can legally reclaim their property after they have been foreclosed on, as long as they do so within the specified time frame.
And, as long as they pay and all penalties, taxes and fess associated with recovering their property. You need to check with a real estate attorney to understand the laws of your state.
This process is called the redemption period and as stated previously, in many states it is mandatory. Some states such as Georgia have no foreclosure redemption period. The states that do, the time frames can vary from one year down to a mere ten days. Again, you need to check with a real estate attorney to determine of your state has a mandatory foreclosure redemption period.
Remember; in states where there is a redemption period, you don’t technically legally own the home until the time frame for the owner to redeem their property is up. Consequently, it is unwise to make any repairs, do any renovations or invest any money in properties that can be redeemed. To do so is rolling the dice in a major way!
What is the difference between purchasing foreclosed homes versus purchasing homes that have not been foreclosed on? The answer to that question is a BIG, “It depends!” If you are buying from certain banks and agencies, you are buying the properties “As Is.”
If you don’t know how to buy Foreclosed Homes For Sale, stay away from these types of deals. In some instances, you may not be getting a free and clear title or deed. That is why you need to do your homework. There could be other variables, state by state.
That said, in some cases it may take a little longer to process the additional paper work but generally speaking, there is not a lot of difference in how the purchasing process goes. Of course, many foreclosed homes must be bought with cash on the barrelhead. Which means, you will have to have funds in place prior to presenting any offers.
In terms of the conditions of the properties, that’s anybody’s guess. Remember, the owners will most likely have neglected many of these properties. Some will have been abandoned. Others will have taken on squatters and still others may have been vandalized. Then again, some will come in pristine condition!
Suffice it to say that foreclosed homes are a goldmine for smart investors who do their homework and plan strategically to make each purchase a moneymaker in and of itself.
Joel Marks is a real estate investor who invests in Cheap Houses For Sale, Foreclosure Homes, REO Properties and markets properties by selling Lease To Own Homes and Owner Financing properties. He specializes in helping Americans avoid foreclosure. If you are in foreclosure or facing foreclosure, help is available.
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