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Foreclosure Homes: Tips and Tricks to the Buyer's Market

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By : Jacquelyn Marks    99 or more times read
With unemployment rates at a terrifying high and employment opportunities increasing very little as 2011 rolls steadily to its end, people no longer earn a comfortable income and cannot make their mortgage payments. Missed payments are just the beginning of the foreclosure process.

According to the Mortgage Bankers Association, “Every three months, 250,000 new families enter into foreclosure… and 1 out of every 200 homes will be foreclosed upon”. These foreclosure rates cause a big problem for cities and their communities.

Vacant homes attract crime and other problems. Foreclosure homes also cost local governments money due to nonpayment of various utilities (ex. Trash removal, sewage) and reduced property values due to lack of upkeep. Regardless of these issues, there are benefits to homeownership and specifically to purchasing a foreclosed home.

Benefits of Buying Foreclosed Homes for Sale

The news often reports that it is a buyer’s market, and now is a great time to buy a first home. However, with so many people losing their houses and unable to make their mortgage payments, why buy now? Especially, why buy foreclosed homes?

Due to the loss of jobs, or not making the same income, people are unable to make mortgage payments or maintain the upkeep of the house. Therefore, people want to make sure they can sell the house before falling behind on payments. This enters the owner into phase two of the foreclosure process, a notice of default issued against the homeowner.

This situation works to the buyer’s advantage because the seller is motivated to sell. In many cases, to unload the home quickly, the seller is more willing to sell for below purchase price. The seller may also be more likely to do any repairs needed, or provide major closing cost credits and other discounts.

Where Can I Find Foreclosure Listings?

There are several ways to find foreclosure listings and purchase foreclosure homes. One way homes are sold is through foreclosure auctions. At auctions, buyers are required to pay cash. When purchasing at an auction, the property is sold for the outstanding amount owed to the mortgage company. This is beneficial to the buyer because not many people can pay cash and, in turn, reduces the buying competition for a home. In addition, the amount owed to the mortgage company could be very small and turn out to be a great deal for the buyer.

Another way to purchase foreclosures is to focus on bank-owned foreclosures. It costs the bank significant amounts of money to hold onto foreclosure homes. It is the bank’s best interest to sell the property as soon as possible. This is extremely beneficial to the buyer because the bank will remove all title problems created by the previous owner. Secondly, all bank-owned homes listed on MLS and the bank has to pay for all realtor fees and commissions. Lastly, the house will remain vacant until sold, allowing for a quick move-in time.

A Foreclosed Home Can Be Your Home for a Great Deal

If looking to buy a house, purchasing a foreclosed home is great opportunity. Just remember these tips when buying a future house. With the combination of eager sellers and desperate banks, property ownership is not out of reach. is one of the firstforeclosure listings websites to emerge on the web. Search all foreclosed homes for sale in your area for a great home.

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