Foreclosure homes for sale are the saleable properties that the banks or financial institutions, being respective lenders, siege when their owners default on their home loan repayments. The banks then sell off, preferably as auction, these foreclosed (Real Estate Owned (REO)) properties to cover up their lent costs.
Is it a good investment?
Since the lenders need to settle only the outstanding debt and not the market value of the foreclosed property, they tend to sell at a discount of nearly 30-60% or more than the prevailing rates. As a result, foreclosure homes for sale offer a good combination of lucrative bargains and sound profits on exit.
Some States Offering the Best Foreclosure Options
New Mexico, Georgia, Texas, Maryland, Massachusetts, North Carolina, Illinois, Ohio, Colorado, Michigan, California, Oklahoma, Nebraska, Florida, Pennsylvania, and Arizona have been some of the hotspots in foreclosure home sales, with some big bargains.
Benefits of Buying Foreclosure Homes
• Profit on Later Sell Outs. Foreclosed properties usually offer a right mix of outstanding ‘home’ buys and a wise investment option for buyers.
• Hidden Cost. If foreclosures belong to reputed banks, the deals are usually safe. No hidden costs exist, as the banks generally put their cards on the table and deal straight with the customers.
Handy Tips for Buying Foreclosed Houses
• Research. Carry out the detailed research of the foreclosure homes for sale you are interested in and have it assessed by a realtor. Look for the possible maintenance & repair costs as well.
• Florida Foreclosure Laws. Knowledge of the concerned state’s foreclosure laws is necessary for a safe acquisition. For example, the Florida State Laws allow only Judicial Foreclosures, with the primary security instrument being mortgage. The state gives the homeowner the Right of Redemption and the Filing of Deficiency Suits.