The buying process for a foreclosed home is reasonably straightforward. But knowing where you can find these properties isn’t—mostly because investors quickly buy them.
Like all things in real estate, tricks of the trade exist. This article is designed to help you purchase your first foreclosed home while not loading you with tons of jargon and industry based terminology.
Why Buy a Home in Foreclosure?
Foreclosed homes are an exciting opportunity for real estate investors because they almost always sell for a much lower price than market value. The reason is simple—the bank only wants to make back the money owed to them for the property and rid themselves of the burden as quickly as possible.
If this amount is less than the property is worth, you can flip it for market value and make a profit. Or you can find your next personal residence for a low price.
Where to Find a Foreclosed Home
Below are some of the places you can find foreclosed homes:
- MLS or Traditional Real Estate Listing Sites (Zillow, Realtor, Redfin, etc.)
- Foreclosure Databases like county websites, foreclosure.com or GreatDCDeals
- Banks REO Department
- HUD Store
- Networking with Industry Professionals (Repo men, Bank REO personnel, other Agents)
But there are things to keep in mind before purchasing a foreclosed home. [Read more…]