Foreclosures happen when a home owner fails to pay the amount borrowed on the home mortgage.
With the recent bursting of the Real Estate Bubble, foreclosures have nearly become the norm and not the exception they used to be.
Investing in foreclosures will give you a rewarding form of investment - Foreclosure Investment.
There are three types of foreclosure investments - Pre-foreclosure investments, foreclosure investments by buying at the auction and Real Estate Owned (REO) investments.
Each method comes with its own distinct advantages.
Pre-foreclosure investments are the most beneficial of foreclosure investments.
This is because you can conduct negotiations directly with a desperate homeowner who would rather sell cheap than face a foreclosure.
This is an investment which does not come with surprises because you can inspect the property and if required hire a professional appraiser before considering the property investment worthy.
The sales agreement can be made flexible and the down payment will be low.
The price of the property will be 20-35 per cent lower than the market value of the property.
You can also buy the property at the actual foreclosure auction.
The price in an auction will be competitive and if a high value property is for sale it is possible to get a bonanza.
Investing in REO properties is another profitable method of foreclosure investing.
You negotiate directly with a lender like a bank or mortgage company that has taken back the collateral.
The lender is usually in a hurry to sell the property as it is highly unlikely that real estate is the lender's primary business.
The biggest plus in REO investment is the absence of title issues.
These properties usually have clear titles.
Title is the main cloud over any real estate investment.
Investing in REO properties saves you the trouble of conducting a title search and paying off encumbrances arising out of liens on the property.
Foreclosure Investment is a worthwhile investment because it is a low cost investment which could yield high profits for you.
With the recent bursting of the Real Estate Bubble, foreclosures have nearly become the norm and not the exception they used to be.
Investing in foreclosures will give you a rewarding form of investment - Foreclosure Investment.
There are three types of foreclosure investments - Pre-foreclosure investments, foreclosure investments by buying at the auction and Real Estate Owned (REO) investments.
Each method comes with its own distinct advantages.
Pre-foreclosure investments are the most beneficial of foreclosure investments.
This is because you can conduct negotiations directly with a desperate homeowner who would rather sell cheap than face a foreclosure.
This is an investment which does not come with surprises because you can inspect the property and if required hire a professional appraiser before considering the property investment worthy.
The sales agreement can be made flexible and the down payment will be low.
The price of the property will be 20-35 per cent lower than the market value of the property.
You can also buy the property at the actual foreclosure auction.
The price in an auction will be competitive and if a high value property is for sale it is possible to get a bonanza.
Investing in REO properties is another profitable method of foreclosure investing.
You negotiate directly with a lender like a bank or mortgage company that has taken back the collateral.
The lender is usually in a hurry to sell the property as it is highly unlikely that real estate is the lender's primary business.
The biggest plus in REO investment is the absence of title issues.
These properties usually have clear titles.
Title is the main cloud over any real estate investment.
Investing in REO properties saves you the trouble of conducting a title search and paying off encumbrances arising out of liens on the property.
Foreclosure Investment is a worthwhile investment because it is a low cost investment which could yield high profits for you.
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