Foreclosure Property Place

Written by Patricia Skinner
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In these hard economic times, foreclosure real estate has become big business. Whatever the reason you're interested in buying a foreclosed property, you should be sure to do the proper research beforehand. Whether you've decided to make acquiring foreclosed real estate a business venture, or you're building up a rental portfolio, you're into fixing and flipping, or even if you'd like to find the perfect foreclosed home for you and your family, doing research into the process of purchasing a foreclosed property teach you what you need to know about sourcing and acquiring the perfect property.

Some of the points you should be aware of when buying foreclosed property are the following: If you are planning to buy your property at a trustee's sale, be sure you realize that often they must be paid for the very next day. There is no period of grace as is normal with other types of real estate transaction.

Take Care When Viewing a Foreclosed Property Place

Your foreclosed property may still be occupied. I advise you to make sure you find out the details about occupancy first. Viewing occupied properties can be dangerous. Although this has been done by some purchasers with success, no real estate agent in his right mind would endorse this activity. The parties in possession are being sued to forcibly remove them from the premises if they do not vacate by a certain date. You can imagine that their frame of mind is, at best, unpredictable, and could well be hostile.

What's a Foreclosed Property Place Worth?

Make sure you have a reliable assessment of the property's true worth. Don't just take someone else's word for it. If you are not qualified to make an assessment yourself, hire someone who is to assess the property for you. Don't commit yourself in any way until you've made an assessment of the true condition of the property and the true value of the property. Remember that it will not have been prepared for sale in the same way that most ordinary real estate is.

Looking for a HUD & VA Foreclosed Property Place?

Foreclosed homes may be bank owned, government owned, or corporation owned. The Federal Housing Administration operates under Housing and Urban Development (HUD). These properties are very popular with those "in the know" because they generally sell for a lot less than the market price. HUD houses are also always empty upon purchase, which is another huge added bonus.

Government-owned homes may also come under the U.S. Department of Veterans Affairs (VA). Again, VA foreclosures are popular because they are always empty, and because they are always priced low for a quick sale. You can find either classification of government-owned homes by inquiring with your local real estate agents, through the media, and on the Internet. Look for listings under HUD and VA.

Bank Foreclosures

Banks lend money to individuals and take back mortgages as collateral for the loans. If a borrower cannot pay the monthly installments on his loan three months in a row, the property may become a bank foreclosed property. Usually, banks are hesitant to initiate foreclosures as the process of doing so and then maintaining empty properties is expensive and risky for them. To avoid losing their credit status, many home owners will try to sell their property privately before foreclosure. Banks generally do not object, as this arrangement is beneficial to all parties in the sale. In this situation you will negotiate primarily with the owner of the home.

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