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Learn How to Buy Houses in Foreclosure

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By : John Cutts    99 or more times read
How to buy houses in foreclosure is one of the first challenges you face when you are thinking of investing in low-priced homes or buying an affordable house for your own use.

Whether you are buying for investment or for personal use, the first thing you are going to look at is your finances. Examine your monthly income, profits from investments, total savings, monthly mortgage payments, household expenses, credit card debts, personal loans, payables and receivables in the near future.

If you are buying your first house, computations are simpler because this means you are not paying any monthly mortgage payment currently. You just compute how much you can afford to allot for monthly home loan payments without affecting your other monthly bills.

As a first time home buyer, you can take advantage of current programs offered by your state or city, the Federal Housing Administration and other federal agencies so you do not have to spend a lot for down payment and closing costs.

If you are thinking about how to buy houses in foreclosure because you are thinking of rental investments, your calculations would be more complex and thorough. It is best if you first ask advice from a real estate consultant or make your investment research first online.

The next thing that would direct your search for a foreclosure is your targeted location. If you are determined to buy a foreclosure in your neighborhood, research local news, online foreclosure listings, neighborhood newsletters or simply drive around your neighborhood.

If you are targeting a place in another state or another city, you can again use online foreclosure listings or search listings in state or city newspapers. You can also visit the web sites of residential real estate firms specializing in foreclosures.

To help you with your search, ask around or within your network for a broker or agent specializing in foreclosures. Make sure the agent you hire is licensed and certified in the state you are targeting and has access to multiple listing services.

While you are looking for a foreclosure, start looking for an experienced contractor that can perform a home inspection for you. This is one of the most important decisions in your home buying process. Most problems arise from major defects in foreclosures that buyers only discover after having paid large amounts of money.

Be well informed. There are a lot of information freely available on the Internet about how to buy houses in foreclosure, but be smart also to be able to filter the information you get.

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