Although buying foreclosure property can provide both great rewards and certain risks, these days a lot of people say it is a great time for buying them. If you are buying foreclosure properties you are taking on a property that has been legally seized often for the non-payment of the mortgage or other debt secured on the property.
As we can see, to be profitable in foreclosure properties, you have to know the process of buying properties. Also the buyer needs to have an experienced agent to help and advise the buyer through the process.
Normally there is a period extended to the previous owners where they can pay the amount in full and get their property back. Though once foreclosed on the buyer does not have title to the property and has no rights.
Some homeowners facing foreclosure have been known to damage a home before moving out. So before buying a foreclosed home, it's important to get a complete assessment of all damage and understand how much the damage will cost to repair the home as the property is sold "as is".
Ways you can buy foreclosures
Pre-foreclosures: This is the most appealing way as it requires the least amount of capital, also most of the information you need is available. You can at any time inspect the house and do title search… in most of the cases you can finish the process easily with no surprises.
At Auction: This process has a variable mechanism according to the state and the location of the property. It can be held anywhere, or in front of the foreclosed house.
REO: (Real Estate Owned properties) properties sold this way tend to be in better shape. This way is considered the safest and also the least financially rewarding than the previous two ways.