Are you in the market for a new home? Whether you are looking to purchase a home for yourself or searching for an investment opportunity, you have a multitude of options available for you! A quick internet search will allow you to filter properties that meet your desired price range, location, home size, etc. When most people are searching for their dream home online, it usually doesn't even cross their mind to consider the foreclosures listings in the area. Since there are several benefits of doing so, we have prepared a list of a few reasons why you should always check the “foreclosure” box before you click the search button. Keep reading and discover a few benefits of purchasing a foreclosure in 2019!
One of the most appealing advantages of purchasing a foreclosed home is that you can get the most bang for your buck. If you are concerned about breaking the bank, a foreclosure may be an excellent route for you. In almost all cases, foreclosed homes are priced below market value. This is because the banks are trying to get these properties off their books as soon as possible. As a result, they are generally set at a low price to generate more offers. If you study the market in the home’s area, you should be able to determine whether or not a foreclosure listing is a good deal.
Foreclosed homes are often seen as investment opportunities. This is because they are generally sold for low and then flipped for a profit later on. Real estate investors love being able to buy low and sell high!
Many people today are scared about having a high mortgage payment due every month. However, did you know that by purchasing a home that is below your budget will provide you with lower mortgage payments? For many home buyers, this is the only reason they need to invest in a foreclosure!
If you're looking to save money on purchasing a house, foreclosures are a great way to go. However, even if you find the property for free (which you can do on USHUD.com) there are still very costly mistakes that most people make when buying a foreclosure.
Read more: 5 Costly Mistakes When Buying Government Foreclosures
REO stands for "Real Estate Owned" and is the term that the mortgage holder uses to identify homes that they have foreclosed on and they are holding in their inventory.
Before a house is foreclosed on, vacated and becomes a REO listing it is considered a pre-foreclosure. Pre-Foreclosures are historically bad investments for a number of different reasons:
HUD homes, once the most numerous foreclosure homes on the market, were reduced in the past several years with the sky rocketing popularity of sub prime mortgages.
As sub prime mortgages provided even lower down payments or in many cases no down payments the homebuyer that would have utilized an FHA mortgage moved to a sub prime mortgage. This has greatly reduced the amount
It is not the desire of HUD to own homes. That is the last thing that HUD wishes to do. They inherit homes from lenders that provided their homebuyers with government insured mortgages and left the scene of the crime when the mortgage was not paid by the home buyer. In order for HUD to dispose of the negative asset they are forced to try and sell it on the open market.
