Buying a Foreclosed Home

Is it cheaper to rent or to purchase a home? The answer simply is NO! Renting is another way of throwing your hard earned money away. You never see the revenues of those payouts only the home owner. Mortgage prices may be higher, but they are going towards equity in the home that you can retrieve in the future, and eventually they will come to an end, renting never will. Thankfully this doesn't have to be the case anymore. If you are not able to afford this on your own government agencies will be able to help.

The United States Department of Housing and Urban Development (HUD), and Fannie Mae has listings of government foreclosed homes in the newspapers and their website regularly. The internet is also a great place to find other agencies/ companies who are getting rid of there properties. Prices will vary depending on the amount owed and the condition of the property, but inspections will be able to allow you to spot the deal for you. Homes are very expensive which is why people are turning to foreclosures. Foreclosures are making it more possible for people who may not normally be able to afford purchasing a home, have options.

A home is considered a foreclosure when it has become behind in its monthly mortgage payments. Banks, Title companies, and several different government agencies sell these homes everyday through REO's, auctions, realtor listings, and so fourth. Loan agents are available to help people with credit issues, or cash flow problems get qualified for a loan. Contact HUD or other local government agencies to get the required paperwork started. You will need to work with a government representative through the process who will help you find multiple properties due to the fact that others will be bidding on the same property as you. You may not always get your first choice so having a back up plan is a good idea, and saves you a lot of time.

Once you get through all of that you will be able to buy a home for 20-50% off. When purchasing a property check to see if there are any liens on the property, or any other money due that would be required to be caught up on before ownership is granted. Once the property is yours you are free to do with it as you choose, fix it up and sell it for an investment property, or use it for a personal property. Now is the time to make this investment move, if not for extra income, then for the ability to control the monthly rates that will be coming out of your pocket. Be in charge of your wallet, your home, your future. Using Foreclosed Properties as an Investment Source Real Estate is the number one way 90% of investors have made their millions. With the growing trend of foreclosures this is a great opportunity to take advantage of a bad situation which is predicted to double by next year, and help people out of a terrible time.

You are able to purchase pre foreclosures and foreclosure properties from people who are in financial hardships allowing them to be able to move on to something they can afford, and salvage some of their credit instead of having to complete the foreclosure process. Buying foreclosures for resell is very profitable due to the discounted prices they are purchased for. It makes a profit margin greater, but still allowing you to sell it for a reasonable price. Even though most of these properties will require extensive fixing up costs it will still be worth the purchase; also remember that the more damage the property has the more room for negotiating you have for an even lower price.

Banks and government agencies are not in the business of real estate they have to get rid of these properties and fast. The longer they have a property the more costly it will be for them due to lawn care, lock smiths, property taxes, and added security in the area to prevent squatters. Once you have your investment property there are several ways to profit from it. There are lease options, allowing you to make the most profit without having to be a landlord. There is renting which will after a period of time become profitable, but means you will have to be more responsible for the property for a longer period of time. Then there is the quick resell which is the most popular, and allows you to move right on to your next investment property.

Real estate isn't for everyone, and everyone doing it shouldn't always be doing it. It takes research, due diligence, investors to back you, and a power team that will make you more profitable without such a high risk of either losing profit, or help you with legal matters that every investor will face. If you feel like this is a direction that you can be happy with now more than ever is the time.

Danielle Schroeder writes on Investment Properties and related issues. You can learn more by visiting my blog, Buying a Foreclosed Home

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