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Getting to Know Foreclosures

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By : Cassiano Travareli    99 or more times read
Included in the great American Dream is home ownership. But if you do not have sufficient cash to purchase one, you will instead take out a mortgage loan. Failure to pay monthly mortgage dues will likely result to a foreclosure and basically, this was the fate of millions of homeowners across the country.

With the large selection of foreclosure properties to choose from, it is quite easy for a buyer to get confused. Basically, there are four types of foreclosed homes: pre-foreclosure, foreclosure at auction, government foreclosures and bank foreclosures.

Pre-foreclosure properties are homes that are on the verge of being repossessed by the lender unless the homeowner finds a way to stop foreclosure. Buyers are often on the lookout for this type of distressed property since the homeowner is quite desperate to sell. And with time as a consideration, almost all transactions involving these properties are speedy.

Foreclosures at auctions are repossessed homes that are about to be auctioned off. Buyers usually flock to these foreclosure sales because of the considerable discount that they could enjoy. Of course, they will have to make the winning bid.

Government foreclosures are houses repossessed by the Department of Housing and Urban Development for mortgage payment default. Since the government is not looking to earn a profit, buyers are usually delighted with their very low selling prices.

Lastly, bank foreclosures are the properties which survived the foreclosure block. They end up being owned by the mortgage holder. One advantage of buying one of these real estate owned properties is having an easier time taking out a loan from the lender who is selling the property.

After understanding the difference with these properties, buyers will have a simpler time identifying which of them will meet their expectations. When in the market for a foreclosure property, buyers should do their homework in order to end up with a really good deal.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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