Foreclosure Investments

Written by Jared Vincenti
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One of the best ways to get real estate at a bargain price is to invest in a foreclosure property. This is a property that is having the mortgage canceled by the bank for delinquency of payment. It is estimated that at any time, nearly one percent of all private property in the United States is facing foreclosure. There are approximately one million homes in the US that have been foreclosed upon, and all of these are open for investment.

These properties are repossessed by the bank, and the bank will in turn sell them to new owners. There are real estate brokers who will specialize in these investment properties. There are also foundations, such as the Fannie Mae foundation, that will buy up foreclosure properties and sell them through real estate agents.

Things to Know about Foreclosure Investments

While many foreclosure properties are new properties, some are also older houses. Many of these may be in need of repairs, and you should make sure that you know the cost of these repairs before you make a bid. Depending on your financial situation and the state of the property, repair costs can keep you from getting approved for a mortgage.

Although it is rarely an issue, you should also inquire about the previous owners. There have been times when the police have to intervene in disputes between new owners and old, but when a property undergoes foreclosure, the previous owner loses all rights to it.

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