A lot of self examination goes into buying foreclosed properties. The decision a buyer makes should never be based on marketing ploys promoting cheap homes at half the price of their original costs. There are equal amounts of advantages and risks involved in investing in distressed homes and every buyer must weigh the pros and cons before deciding.
Research
The research that buyers need to undertake is no small matter for it can spell the success or failure of their investment. Foreclosed properties can be found in newspapers, county courthouses and real estate companies. The best resources that people can use to find these homes are online foreclosure listings services. Once you have found a home you like you should touch base with its property manager.
Financing
There is the matter of payment to consider as well. If you are paying cash then there should be no problems really but if not then you should pre-qualify for a home loan. Sellers will only deal with buyers who can present a loan pre-approval document stating their ability to pay for the property. To obtain this, one should have a spotless credit history and he should be gainfully employed.
Then there is more research to be done. You must find out the situation of the property's title by doing a title search. In here you know whether the property has any back-taxes, liens or holds which will all transfer to you as the new owner. You must also be able to conduct an inspection of the property to determine the cost of repair. A home appraisal is also very important and only a professional real estate practitioner can conduct this. All these tasks will give you a better idea on the real value of the foreclosed properties you are considering to purchase.