subject: "Buying a house on foreclosure" [print this page] "Buying a house on foreclosure" "Buying a house on foreclosure"
Homeowners unable to move with the flow of their mortgage payments end up seeing their house being foreclosed by the bank. Foreclosure is a process where the bank advertises the property they intent to close out, and the property is then sold at the court house steps. Buying a house from a foreclosure auction is a good opportunity for those who are interested to buy at a discount.
In the domain of real estate investing, there are many types of investment options. In order to be a thriving investor one needs to be capable of recognizing the best type of investment at any given time. Many real estate investors feel that buying a foreclosure property is one of the best ways to make an immediate equity gain from a property.
There are three suitable time periods for purchasing a foreclosure property. The first one comes right before the foreclosure auction; whereas the second one is when investors buy directly at the auction; and the third time comes when the investors have to buy the property either directly from the bank or the auction company. The properties which are owned by the bank are known as Real Estate Owned or in short REO. Each of these opportunities provides unparallel gains and challenges. A smart investor looks into the advantages and disadvantages of each of the foreclosure opportunities in order to identify the safest and best investment prospect.
While buying a house, the potential buyer is allowed to see the property and have it inspected which comes with a report of the fitting that are broken, whether the fixtures and fittings are correctly installed and meet the local building codes. However, buying a foreclosure does not allow the buyer to see the inside of the house or inspect the property before the purchase. The house might require to be repaired extensively which may cost a few thousand dollars. You will be able to know it only when you have paid for the property, and there is no money back guarantee when buying a foreclosure.
Purchasing a house at the foreclosure auction requires the buyer to pay the price of the property immediately. In other words, the buyer must have the cash in hand to make the purchase. In most of the states the requirement is to pay the cash immediately after the auction is over, while in a very few states one has time till 5pm on the day of sale.
Nancy Geils
www.investingwiththestars.net/season3
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