Buying Cheap houses through foreclosure- By: John Smith

Description : Cheap houses create an instant impulse in the minds wishing for long to become homeowners. There are several ways to buy houses at a cheaper price. They are fixer up-gradation, buying them on joint ownership, and purchasing foreclosed properties. However, surveys have found that foreclosed properties can save up to 36% and have several other advantages over joint ownership and upgrading fixer. In this article we will focus on how to buy foreclosed properties at a cheaper price and the advantages of buying these properties.

Foreclosure is a legal binding process of depriving borrower of home equity loan on equal right of redemption. This situation arises when the borrower makes several defaults on repayment of the loan amount with interest. In most of the states in US, lenders are not legally bound to intimate the borrowers that they are filing foreclosure suit. The foreclosure process takes 3-14 months depending upon the redemption period mentioned on the mortgage. However once foreclosure plea is heard and accepted by the court, all details related to the property appear on local newspapers. Generally, these properties are sold through the process of auction where the highest bidder has the right to make the final payment and own the property.

From where you can get information related to foreclosure homes?

If you wish to buy foreclosed homes at a cheaper price, you are advised to have a daily look at local news paper displays. Real estate websites also help a lot in this regard. They not only enlist foreclosed properties in your locality, but also advise you on pros and cons of buying these properties. With few clicks on computer you can find scores of such websites.

Priority check list before buying foreclosed homes

You need to inquire about litigations, tax and insurance premium dues pending on the property you are buying. If permissible, you need to make a physical inspection of the property you are buying. While buying it through auction, make sure that you have the required amount with you in cash. Financing facilities are generally not available to buy foreclosed homes.

Advantages of buying cheap homes

Cheap homes are equally beneficial for prospective homeowners and investors. With little renovation you can add to the equity of the property and sell it at a higher price. As they lay unoccupied, you can take the possession instantly after making the payment. The real estate market is showing the symptoms of recovery. In such a situation, cheap houses are definitely a worthy investment option.

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