A Brief Guide in Buying Foreclosed Homes
We have all heard the old saying that "one man's trash is another man's treasure." Now while foreclosure is considered a tragedy it can also be a blessing for the real estate investor. Residential real estate is also expensive. Prices vary from one place to another. This is a major reason somemany take a look or start investing with foreclosure real estate.
Repossessed homes can be great for those who simply cannot afford a new house. These houses are sold for a fraction of their real price when sold in the real estate market. Other people can also take advantage of these houses to be able to make their own investments since they are sold by mortgage lenders at a low price.
Often times repossessed houses are those which require a lot of repairs. this could be for any number of reasons. Previous homeowners do hot have the means to maintain the house or just didn't take care of them? Some of these houses have also been abandoned by their previous homeowners,this causes mortgage lenders have no choice but to get rid of them as soon as possible.
Study up on the process
Before you buy a repossessed home you need to make sure that you're going to get a good deal. You may have to do a little bit of research first to be able to see how much you will have to spend in buying and repairing the property.
If you are short on cash, you can get a loan. ( in some cases you can get an assumable loan) Talk first to loan officer or mortgage broker to see if you are qualified. If you are qualified gather the information you need.
You will be able to find several lists of foreclosure homes or homes for auction on the internet. In some cases a list will also be published in local newspapers. Use the contact information listed in the ad to find out about seeing the property.(In some states this is NOT an option)
Review your budget. What are you willing to pay for the foreclosed house along with the repairs? If you're planning to "flip" or sell the house,ask your agent to get you comps for the "after repair value". If you're planning to rent it, calculate the monthly rate and compare it to prices in the local paper for the same type of property.
Once you have finished all the research, make a bid on the property. After you have purchased the house have it inspected and appraised. Then look for a title company to research the history of the house. Once the house is yours and, any repairs you need to make are done, you have the option to live in it or rent it out. - 23208
Repossessed homes can be great for those who simply cannot afford a new house. These houses are sold for a fraction of their real price when sold in the real estate market. Other people can also take advantage of these houses to be able to make their own investments since they are sold by mortgage lenders at a low price.
Often times repossessed houses are those which require a lot of repairs. this could be for any number of reasons. Previous homeowners do hot have the means to maintain the house or just didn't take care of them? Some of these houses have also been abandoned by their previous homeowners,this causes mortgage lenders have no choice but to get rid of them as soon as possible.
Study up on the process
Before you buy a repossessed home you need to make sure that you're going to get a good deal. You may have to do a little bit of research first to be able to see how much you will have to spend in buying and repairing the property.
If you are short on cash, you can get a loan. ( in some cases you can get an assumable loan) Talk first to loan officer or mortgage broker to see if you are qualified. If you are qualified gather the information you need.
You will be able to find several lists of foreclosure homes or homes for auction on the internet. In some cases a list will also be published in local newspapers. Use the contact information listed in the ad to find out about seeing the property.(In some states this is NOT an option)
Review your budget. What are you willing to pay for the foreclosed house along with the repairs? If you're planning to "flip" or sell the house,ask your agent to get you comps for the "after repair value". If you're planning to rent it, calculate the monthly rate and compare it to prices in the local paper for the same type of property.
Once you have finished all the research, make a bid on the property. After you have purchased the house have it inspected and appraised. Then look for a title company to research the history of the house. Once the house is yours and, any repairs you need to make are done, you have the option to live in it or rent it out. - 23208
About the Author:
Doc Schmyz has invested all over the US and Mexico. He built a free free website shares Real estate investing information for all over the US. Find Real estate investing information by state
posted by X - Men @ 5:08 AM
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