Buying foreclosed properties for sale is the best way to gain equity. The housing crisis affected a whole lot of homeowners even those with high paying jobs living in affluent neighborhoods. These people find themselves caught in a foreclosure nightmare that they are powerless to fight. This unfortunate scenario has given rise to a growing number of posh homes still in top condition that have been foreclosed upon and are now available in the market.
If you plan on buying foreclosed properties for sale in affluent neighborhoods, you may just find what you need through real estate owned homes sold by banks. Since banks are the leading provider of home financing, they also have the highest number of foreclosed homes in white collar neighborhoods.
The Low Down On Real Estate Owned Homes
If this is your first time to purchase a foreclosure, you are better off considering bank owned or real estate owned homes. These foreclosed properties did not sell at auctions and have thus become properties of the bank that effected the foreclosure. Banks would want to sell of these homes as fast as possible in order for them to recover their losses due to the mortgage default of the previous owner. Banks are willing to go the length just to be able to sell of these homes and so they provide a bundle of incentives to make the properties more attractive to buyers.
Banks endeavor to minimize the risks that these homes pose to buyers and so they provide an appraisal as well as a title insurance. Other types of foreclosures do not have this. It saves buyers the trouble of conducting a title search. Banks are likewise open to additional clauses to the contract to the effect that the buyer can pull out of the purchase based on the results of the home inspection. They will take care of evicting former occupants and sometimes go as far as providing the financing for the buyer.
REO homes are the safest type of foreclosed properties for sale. The only thing a buyer will have to be keen on is the cost of repairs as all these homes are sold as is. Otherwise everything else is handed over by the bank in a silver platter.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.