Foreclosed Homes
Foreclosed Homes
By Mike Finley
Are you looking for a foreclosed home? You hear about them all over the place, from the radio to the Internet, but if you are in the market for one, the number of choices can be quite daunting. In a slumping economy, some people can’t afford to keep their mortgage and have to go through the process of foreclosure. Their loss could be your gain; you can usually find a home of this type for ridiculously cheaper price than open market homes. There have been houses that originally sold for over $100,000 sell at a foreclosure auction for less than $40,000. The trick to finding a house on the foreclosure market is knowing where to look and knowing if it is a good buy to start with. I have a formula that I use on my site that will tell me what profit to expect before I buy the house.
The easy part of all this is where to look for foreclosed homes. There are countless websites that offer listings for a small fee, sometimes less than $5 and at times for free. Most states’ departments of Housing and Urban Development offer their foreclosure listings for free through their office, or you can sign up with numerous online services that let you see their listings.
The next thing to be concerned about is the value of the home you are looking at. Chances are good that any foreclosure is worth more than the price of buying it at auction, but you should look out for any signs that a previous owner has stripped important things like light fixtures, appliances, or even carpeting before they were forced to leave. Unfortunately this happens, but it’s also one of the key reasons a homes price is driven down.
The sale is put on by the bank that owns the defaulted mortgage. When a bank sells foreclosed homes, they are just trying to recover the balance of the mortgage. Remember that banks are not in the business of owning and holding homes, they are in the business of helping people pay for homes. Sometimes a bank will even take less than what is owed just to get of it.
The bottom line is when you are looking for a deal on a home, you should know what you’re getting into, do your homework, and be prepared to fix the place up. Deals can be found, as long as you are wise and know how to the game!
Mike Finley has been a title abstractor for over 10 years in the real estate housing industry. He now gives you his incite into home foreclosures so you can benefit from them and help take them off the market. For more information on how you can take advantage of his experience visit: http://www.forclosedhomestoday.com
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