Foreclosures have always been considered as cheap houses for sale because they are being offered at prices that are far lower than their actual market value. The owners of these repossessed properties aim only to cover the amount of the unserviced mortgage loan plus closing costs when they price these homes. This situation is particularly attractive to real estate investors who buy up foreclosures and resell them to the market at a price which is nearer their real market value.
Finding Affordable Homes
If you believe that cheap houses for sale is the way to go then you should start searching for properties that meet your requirements. Foreclosures can be generally categorized into pre-foreclosures, homes sold at auctions and real estate owned or bank repos. Any foreclosure listing available either offline or online will have a mix of these three categories. The resources available to prospective buyers include local newspapers, government agencies such as the HUD, the Veterans Affairs Administration, the Internal Revenue Service and others. You can also find these homes in your county courthouse where notices of foreclosures are filed, and through real estate brokers and agents.
Perhaps the leading resource for distressed properties are the foreclosure listings services available online. These sites maintain a comprehensive foreclosures database that gets updated daily or weekly. They have powerful search engines that enables you to refine your search to just the homes that fit your requirements.
So You Have Spotted the Properties You Want to Consider
Once you've come up with a list of cheap houses for sale that you would like to consider more closely, waste no time in contacting its property manager or seller. Request for a schedule to inspect the home and bring a licensed home inspector with you when you conduct this activity. You will also spend some money on a title search and an appraisal so make sure you include this in your budget.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.