|
What are foreclosures
and why should you buy foreclosed homes?
For any number of
reasons, sometimes real estate owners encounter hard times and
are forced to relinquish real estate.
When this happens, the mortgage holder or lender is
forced to take back a property.
With VA and FHA loans, the U.S. government is
ultimately responsible for purchasing the property back.
With conventional loans, a mortgage company or lender
is responsible.
The
U.S. government and lenders want nothing to do with the
properties and would like to resell them as quickly as
possible. After all, lenders are in the lending business not
real estate investing. That’s
where you come in. You
can help them with their problem and help yourself in the
process.
Do
some checking around. You'll be amazed to find out that
government properties are being offered by agencies like the
Veteran's Administration for little or no money down. Even a non-vet can take advantage
of these investment properties. Even better yet, they also offer attractive financing with
very little down at closing.
If you are looking for a way to jump-start your real
estate investing career, contact a real estate agent and ask
about VA foreclosures or visit their online list of properties
available in you state.
 The
Housing and Urban Development Agency also offers reposed
homes. HUD Homes are initially offered on a priority basis to owner
occupant purchasers (people who are buying the home as their
primary residence). Following the priority period,
unsold properties are then available to all buyers, including
investors. Select cities near where
you live or that you are interested in.
The
Federal Deposit Insurance Corporation (FDIC), Government
Services Agency (GSA) and even the Internal Revenue Service
offer foreclosed homes. Why? Because they are not in the
business of real estate.
Finally,
your local bank may just be a gold mine for
foreclosures. Banks don't like to admit that they've
made a mistake, so you'll have to ask around and find the
right loan officer or V.P. Many banks will even send you
a listing of their foreclosed properties.
|
