Foreclosure: The process of taking possession of a mortgaged property as a result of someone’s failure to keep up mortgage payments.
Foreclosure is a social reality. There are over two million homes in foreclosure these days and counting. Foreclosure listings include bank owned, HUD homes, Government foreclosures and REO.
There are all kinds of foreclosure homes. From the tear down, the lot or even the high end that even at foreclosed prices you can’t afford.
Investors are the primary market who jumps in to buy foreclosure properties. However, as a first time home buyer, could be a great investment.
When these houses hit the market they are priced to sell. They are below market value. And they have price adjustments every 30 days if the property hasn’t sold. So the price keeps going down.
The process is different from the traditional home buying. In some cases you have to go through a bidding process, in others, you just submit an offer with a bunch of other addendums to the contract. But in any case, after all the paperwork and negotiation is done, you are buying a deal.
To buy a foreclosure you need to keep handy the following:
· Pre-approval letter from a lender (if you are not paying cash)
· Bank Statement – only if buying cash
· Photo id
· Personal checks for earnest money submittal
Ask your Professional Real Estate Agent. He/she should be able to guide you through the process so you don’t miss out on good deals.