Wednesday, February 18, 2015

Open for Business: Buying a Foreclosed Home



A home gets foreclosed when the owner is not able to complete the mortgage loan payments and the bank has repossessed the home. Such a property is not usually for sale until the entire process of foreclosure is done and it is listed on a Multiple Listing Service. A foreclosed house is sold below its actual market value and is a great option for buyers who are conscious about prices. The home is sold as is, and any repairs must be done by the buyer.


The first step in purchasing a foreclosed home is to find a real estate broker who directly works with banks that are in possession of such estates, and then get pre-approval from a lender. After attending to these, the house hunt may begin; prospective buyers can use resources such as online databases of foreclosed homes to make the search easier.

Buying a foreclosed home means a low downpayment, low monthly repayments, and a higher return on investment. Some repairs here and there may cost a bit, but the resulting increase in the house’s value would be significant. While the foreclosed homes market may not be for everybody, it does have its unique advantages, and it is viewed by many as among the best real estate investments out there.

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