Real Estate Owned Foreclosure Properties
For new investors, buying and selling foreclosed homes can be a lucrative road to financial independence. Investors with marketing and deal negotiation skills can produce profits in the foreclosure property market. This is especially true for savvy short sellers who can negotiate discounts on the homes in foreclosure they purchase.
Also known as foreclosures and Real Estate Owned (REOs), bank repossessed houses are seized by a after a homeowner defaults on a mortgage loan. Often purchased for a fraction of their actual market prices, foreclosure homes are such a bargain because the lending institution wants quick compensation for their money. In today’s marketing repossessed foreclosures are becoming increasingly sought after.
If you can get good home loans from financial institutions, the risk on your purchase with be mitigated. Also be sure to inspect the foreclosure property, determine if there are any existing liens, and execute a property title search. Buying foreclosed houses can be quite complicated so be sure to you familiarize yourself with the foreclosure laws in your state.