If you are looking for foreclosed homes for sale you can buy HUD homes for cheap, such as bank foreclosures and repo homes, there are many listings available of commercial properties by state, as well as REO's. in California, Georgia, New York, Texas and Florida. Bargain residential real estate is a safe place to put your money for small investors. Whether you are purchasing a investment property for your residence, rental or resale you will be able to find upscale homes such as beachfront properties in affluent areas going into default during economic downturns.
Foreclosure Listings
Savings of 30 to 40 percent below market value makes purchasing cheap foreclosures a goldmine for those buying from the lender who often times will waive the closing costs and discount the down payment with lower interest rates. As you search online you will find sites that have a database of banked owned properties for sale along with vital statistics on cost of living, median incomes, population demographics, local schools and neighborhoods.
NonProfits Buy HUD Foreclosures
The current economic crisis has opened up opportunities for government agencies and non profit organizations to buy HUD homes to use in local housing or homeless programs, due to companies with a FHA insured mortgage are unable to make monthly payments, then once the lender foreclosues HUD becomes the property owner and offers it for sale, to recover the loss on the foreclosure claim, HUD homes are sold at market value based on the price of similar homes in the area with prices that are affordable for low and moderate income individuals. The reason the HUD home asking price is so low is because the home is sold as is and may need fixing or repairs. If the buyer needs help with a portion of the financing or closing costs HUD offers special incentives. Your real estate agent must submit your bid for you and before you make an offer get the home professionally inspected.
Cheap foreclosed homes for saleAs a RE investor some things you will need to know about buying foreclosed properties is how to avoid pitfalls in order to make lots of money, when buying foreclosures that have rights of redemption periods, the law depending on what state your in allows for homeowners to redeem their property, even after it has been sold in a foreclosure. As a property investor you will need to know your rights, its starts with knowing the redemption periods in the jurisdiction in which you are buying as well as waiting until the redemption period is over before doing any major fixing and repairing of the home, this is the only way that you can save your foreclosure investment capital, so it is best to buy the redemption rights from the owner to avoid losing your investment .
Pay Cash for your Foreclosure Property
If at all possible you will want to make sure that financially you can buy a HUD home cheap with cash. When buying pre-foreclosures, buying bank foreclosures may be your dream to help struggling homeowners get out from up under a ballooning mortgage payment. When a borrower is late and before the lender forecloses on the property, depending on the state or county your in you can purchase the property directly from the owner at a very low price.
To find these kinds of deals and bargains you will need to get a foreclosure listing that has preforeclosures on it, you can also check with realtors, public records, bank websites and property management companies. Steps to success include locating lis pendens which is the title to the property notice has been filed, next once you know which bank holds the mortgage loan and how much is owed on the note you can make an offer based on the comps in the area. If the homeowner is receptive to your offer you will have succesfully closed your first investment deal.