By Annalisa Burgos, FrontDoor.com | Published: 10/06/2009
FORECLOSURE TREATS TO TAKE ADVANTAGE OF
Treat #1: Homeownership is affordable.
It may take a lot of patience and research, but amazing deals are out there. Gone are the days when foreclosures were merely abandoned, condemned buildings. Today's foreclosures range from the typical eyesore to a multi-million-dollar estate. It's possible to find a well-maintained foreclosure property for as low as 50 percent below market value and, with decent credit, get a mortgage with a low interest rate.
The flood of foreclosures and short sales into the market has pushed home prices so low that buyers who were once priced out are now able to reap the benefits of homeownership.
Know how to find foreclosure deals >>
Treat #2: Banks are motivated to get rid of their inventory.
Banks are not in the business of real estate, so their goal is to get their non-income-producing properties off their books as quickly as possible. The benefit for bargain hunters? Aggressively reduced pricing. The downside? Increased competition for these properties and a longer closing process.
To better position yourself, build relationships with a lender's REO (real estate owned) department, bank-owned homes department or asset-management department. If you are willing to take the risk, consider making no-hassle offers, like buying the property "as-is" or proposing an all-cash deal.
Know the steps to buying a bank-owned property >>
Treat #3: The right foreclosure can be a good investment.
With falling home prices and low mortgage rates, the right foreclosure can be a profitable investment, whether you rent it out or flip it.
Just as you would for a traditional property, research the neighborhood and comps. Not only should you have a good sense of the home's market value and your potential expenses, but you should also consider the surrounding area's economic stability and potential for growth.
Know the 10 Best Places to Buy Foreclosures >>
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