Real Estate Foreclosures

Written by Linda Alexander
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Real estate foreclosures are increasingly being found in upscale neighborhoods. The idea that you can only find foreclosures in high-crime neighborhoods is out of date. With today's bad economy, lots of people are losing their homes, including more affluent owners.

Investing in real estate foreclosures for your primary residence, to rent, or to sell, is one of the best investments you can make. With people fearful of the stock market, and interest rates at record lows, it just makes sense to invest in something you understand. Many owners of homes about to go into foreclosure have been struggling for a year or more with finances. Therefore, the homes may need repairs, anywhere from a leaky faucet to electrical or plumbing work.

Hidden Real Estate Foreclosures

You can also find real estate foreclosures in the "hidden" market of new homes. In this down economy, some builders are running out of time before they have to pay their loans back, and haven't found buyers yet. These houses probably won't appear on national lists. When banks repossess them, they usually go straight to real estate agents to handle the sale for them.

Buying foreclosures in a good area, below market values, that appreciate every year area a great investment strategy for many people. The appreciation is tax exempt until you sell the home. If it is your primary residence, the appreciation could be tax free. Also, if you have good credit, you can usually borrow the entire amount you need to buy the home. Otherwise, banks may lend to you if you put down ten percent.

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