Foreclosures & Pre-foreclosures - Advantages and Disadvantages
I'm sure you're aware of the real estate and foreclosure crisis going on in the United States. Because of this, there is an excess of homes on the market. Obviously some properties will be run down in unappealing neighbourhoods as usual, but what's different this time is the surprisingly increasing number of well kept and even executive style properties that are up for sale for pennies on the dollar.
If you are considering buying a foreclosed home from a government auction then you couldn't be lookin at a better time then now. Before you do though you should be aware of the advantages and disadvantages of buying foreclosures over using a realtor for a non-foreclosure property.
Here are some advantages to purchasing a foreclosed or pre-foreclosed home:
- The main advantage in purchasing a foreclosed home is the below market price.
- Many of the homes are in great condition for what you pay.
- Many more different types of homes to choose from then in the past.
- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).
- You are not required to pay certain insurances.
- Good property investment to rent or resell.
- Less risky then the stock market, as you own something tangible
Disadvantages:
- Mortgages may be harder to get (unless you have great credit with your bank).
- Need to be mindful of existing liens or taxes that have not been paid on the property.
Making sure that the foreclosed home you're interested in is clear of all debt is one of the most important things you should do homework on. After that, find out what types of payment plans are allowed, and have any required financing in place beforehand. Obviously any additional savings you may have will help.
Government auctions are being held regularly across North America. Check the Internet to discover information on the upcoming auctions and the property listings at each auction. Many sites will display images of properties that are in pre-foreclosure (properties you can purchase before the auction) and that will be each particular auction. Buying a foreclosed home through a government auction can be a very rewarding experience, but make sure you do your research first. You may wish to just watch during your first visit to a government auction to gain experience and get an idea of the procedure used. - 23212
If you are considering buying a foreclosed home from a government auction then you couldn't be lookin at a better time then now. Before you do though you should be aware of the advantages and disadvantages of buying foreclosures over using a realtor for a non-foreclosure property.
Here are some advantages to purchasing a foreclosed or pre-foreclosed home:
- The main advantage in purchasing a foreclosed home is the below market price.
- Many of the homes are in great condition for what you pay.
- Many more different types of homes to choose from then in the past.
- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).
- You are not required to pay certain insurances.
- Good property investment to rent or resell.
- Less risky then the stock market, as you own something tangible
Disadvantages:
- Mortgages may be harder to get (unless you have great credit with your bank).
- Need to be mindful of existing liens or taxes that have not been paid on the property.
Making sure that the foreclosed home you're interested in is clear of all debt is one of the most important things you should do homework on. After that, find out what types of payment plans are allowed, and have any required financing in place beforehand. Obviously any additional savings you may have will help.
Government auctions are being held regularly across North America. Check the Internet to discover information on the upcoming auctions and the property listings at each auction. Many sites will display images of properties that are in pre-foreclosure (properties you can purchase before the auction) and that will be each particular auction. Buying a foreclosed home through a government auction can be a very rewarding experience, but make sure you do your research first. You may wish to just watch during your first visit to a government auction to gain experience and get an idea of the procedure used. - 23212
About the Author:
To find an updated listing of foreclosures/pre-foreclosures on the best government auction sites click government auctions review or Bank Foreclosures & Pre-foreclosures
posted by X - Men @ 6:38 AM
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