– Buying a REO Foreclosed Property might save you Money
May 30th, 2006
It is an
unfortunate event that the previous home owners were unable to keep
their homes, however the benefits to a foreclosed home is that you can
often buy it at less than market value. This is especially true when
homes are not selling as fast as they could. If the real estate market
slows down the prices on the foreclosures will also drop.
You can search
foreclosures that are bank owned, HUD Foreclosures and VA foreclosures.
A foreclosure is usually owned by a financial or government
institution. If the home sits around long enough the price will often
Finding both bank
and government foreclosures are straight forward. You would have to
find a real estate agent that would be willing to work with you to help
you find the listings. Lists are also available online which you can
sign up with that will cover your area. HUD lists the properties at no
charge. Real estate agents don’t always want to show all the homes
as it could take more time than it is worth on the commission. If
you do some of the foot work and bring the agent in when needed to
finalize you choices it would be good for both you and the agent.
There are online
courses specifically set aside to help educate how to get the best
deals. It will let you understand the real estate terms involved
specifically to foreclosed properties or homes that are about to be
foreclosed upon. If you are looking to profit on a regular basis from
these types of properties then you should study your subject completely.
often have many repairs to complete. Sometimes bank owned properties
will be fixed up prior to selling. This however usually means that they
want market value. If you are not able to fix up the properties, buying
a foreclosure may not be the right kind of property to purchase.
If you are going
to fix up a property you need to know how much it will cost. If it
costs as much as market value, you probably are better off getting a
house that is in good condition already. If you are relying on a loan
to pay for the property this also becomes a factor in whether or not
they will approve to lend on the home. Some of the HUD foreclosures are
not in good enough repair to qualify for a home loan.
are auctioned off through a website format. In order for the bid to go
through a real estate agent must be qualified to bid on HUD
foreclosures. You will be able to walk through the property before
bidding on the house.
If you are looking
for a home to live in you should keep your options open to all real
estate as the bank owned homes may not be the best deal for your money.
It all depends on what is going on in general in real estate. If homes
are selling quickly and for an increased price you are probably not
going to stumble on foreclosure deals as quickly. You can find them,
but it will take time and a lot of searching.
If the real estate
industry slows down and people can’t sell their homes and have to take a
loss on the sale of their home, there will be more deals available.
Keywords and misspelling: forclosures forclosed
proprty houses homes listings R.E.O. bank owned homes H.U.D. V.A. reel
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