1. You may not find a “steal of a deal” once the bank repossesses it.
No, banks do not want to own property. Yes, they would like to sell the homes they have had to repossess. But, be careful. This situation does not mean the banks will give away homes. Banks hire professionals to evaluate the market to determine how much the price they can obtain for a foreclosed property. While you may find properties that are below value, it isn’t like you will find the deal of a century. Plenty of homes are priced under value on the market. Be sure to always research, and look at all good deals, not just foreclosures necessarily.
2. You will find that some investors work full time to buy properties from sellers pre-foreclosure.
The pre-foreclosure business requires investors to keep tabs on foreclosure notices in an effort to pursue property owners to “help” them avoid foreclosure. Before a property is foreclosed, it is often listed in the daily newspaper as “notice” that the home will be repossessed. Investors then pursue the homeowners to try to buy the property before the bank can take it, or figure out other(creative) ways to take ownership. This can be a good, or bad thing depending on the investor. I’ve never worked this way, but I know someone who has been really successful doing so.
(The inside of a foreclosed home--an extreme, but actual case)
3. Foreclosures aren’t always in the best condition. In some cases, you may not have a chance to inspect.
Think about this. If someone has purchased a property, and are being evicted due to foreclosure, are they going to take the time to clean up, and care for the condition? In most cases, you can go to the property, and assess the damage (because there will likely be damage). In other cases, (auctions, courthouse sales), you may not have the opportunity to inspect. All I can say about this is, buyer BEWARE!
Comment Preview