Why You Should SHOULD Buy A Foreclosed Property
1. You May Be Getting A Good Deal
Foreclosure homes bought at below market values in good areas that appreciate annually can be a sound investment strategy for both homeowners and many investors.
The current market conditions make it a perfect time to purchase one or more foreclosure properties for your private residence, rental or resale. During economic downturns, more upscale homes go into foreclosure, so the notion that foreclosure homes are only available in crime-ridden areas is inaccurate. Beachfront and homes in affluent areas are part of the mix of foreclosed properties available.
Prices usually range from 20 to 80 percent below market value, depending on where the house is located.
2. Safety
Bank-owned properties offer the safest deal for inexperienced foreclosure buyers. Essentilally, there's no risk. There are no taxes, no liens, no tenants to evict.
3. You Can Close in Quickly
If you are looking at homes for sale that are listed as a "short sale" or in pre-foreclosure, be prepared to wait as long as 60 - 120 days before you can close, depending upon where the home is in the short sale process. Short sales need approvals from various lenders and agencies before a closing can take place. If you have the time and can be patient, making offers on short sales makes sense.
However, if your situation requires you to move within 60 days, then you need to be looking at a foreclosed home listed as a REO. This is an abbreviation for Real Estate Owned (by the lender). An REO home is ready for a new owner pending clear title and can GENERALLY close in 30 days or so.
