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.
There are some great values out there but in order to take advantage of them you should first be aware of both the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method using a realtor.
Here are some advantages to purchasing a foreclosed or pre-foreclosed home:
- Price is the number one reason to purchase a foreclosure.
- Many of the homes are in great condition for what you pay.
- The selection range of home available to choose from is extensive.
- No Realtors to have to go through or agency fees to pay (although you should still get advice from someone who knows something about real estate).
- You are not required to pay certain insurances.
- Great investment opportunity (i.e. rent out or flip that house)
- Less risky than trading equities in the stock market.
Disadvantages:
- Borrowing money may be more difficult, unless you have strong credit.
- There may be existing liens or unpaid taxes against 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 all around the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet along with detailed listings on the homes that will be for sale. Purchasing a home through a government auction can be a very rewarding adventure but doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment. - 23204
There are some great values out there but in order to take advantage of them you should first be aware of both the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method using a realtor.
Here are some advantages to purchasing a foreclosed or pre-foreclosed home:
- Price is the number one reason to purchase a foreclosure.
- Many of the homes are in great condition for what you pay.
- The selection range of home available to choose from is extensive.
- No Realtors to have to go through or agency fees to pay (although you should still get advice from someone who knows something about real estate).
- You are not required to pay certain insurances.
- Great investment opportunity (i.e. rent out or flip that house)
- Less risky than trading equities in the stock market.
Disadvantages:
- Borrowing money may be more difficult, unless you have strong credit.
- There may be existing liens or unpaid taxes against 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 all around the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet along with detailed listings on the homes that will be for sale. Purchasing a home through a government auction can be a very rewarding adventure but doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment. - 23204
About the Author:
To find an updated list of foreclosures/pre-foreclosures on the best government auction sites check out government auctions review or Bank Foreclosures & Pre-foreclosures
posted by X - Men @ 2:31 AM
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