Buying Foreclosures Someones Loss Can Be Your Gain
Buying Foreclosures-Someones Loss Can Be Your Gain Like all markets, the real estate market goes through cycles. Most of us realize that now is a "down time" in the real estate market. There are many people who have found themselves without a job and as a consequence they have also lost their homes. Sad as this scenario is, it can still present an opportunity for anyone who is into Buying Foreclosures. Some of us may feel like we are profiting on the misery of others, I personally don't think that is accurate. Unless you are the one who was directly responsible for someone losing their home, none of these unfortunate situations are your fault. Someone is going to be Buying Foreclosures and there is no reason it shouldn't be you. There are several things you can do with the property once you buy it. Some people will try to find a great house at a hugely discounted price so they can live in it themselves. Others will try to buy foreclosed properties to either keep them as rentals or fix them up and sell them for a profit. In other words, not to live in themselves but to use them as an investment. Whichever option you choose, here are some basics about how to find and buy foreclosed homes in your area: 1. The first thing is to find out what foreclosed properties you have in the area you want to buy. There are many resources for this, do a check online for websites that specialize in this type of information. For most of them you will need to pay for a subscription. Choose the site you want to use carefully. You can also try Housing and Urban Development (HUD), Fannie Mae, and Freddie Mac and the Veterans Administration (VA). Also, local banks and credit unions may be able to provide a list of foreclosures in your area. Local auction houses may also have listings of foreclosures that will be sold at auction. 2. Once you locate one, or more, properties that interest you find out all you can about the property. Talk to a local realtor, arrange a professional inspection (if allowed) go through the house find out all you can about the taxes, liens, maintenance issues, etc. The point is you want to make sure that you can afford the house and any extra expenses you will be responsible for. That house that you thought was such a good deal may not turn out to be such a great deal after all if it comes with a lot of expensive repairs or past due taxes. 3. Make sure you have your financing in order. This step should actually be the first step because there is no point in looking at houses that you can't afford. Also, if you go to an auction you will need to have a down payment in the form of cash or cashiers check on the day of the auction. It is usually around 5% of the total sale price of the house. Buying Foreclosures can be a great way to make some extra money or just a great way to find a wonderful home for you and your family at a discounted price. Whatever reason you are interested in getting a foreclosed home, just make sure you take your time and do your homework. If you don't, your dream home may turn into a nightmare.