What are the various lucrative options available under foreclosure homes for first time buyers- By: Fiona Livnat
With the number of foreclosure homes surging the real estate market by thousands every month, first time buyers have the rare opportunity of purchasing some prime deals at nearly half of their actual worth. Some of the most lucrative options under foreclosed properties include REO or bank owned houses, fixer upper homes, pre-foreclosures as well as those that are being sold through public sales.
REO properties are basically houses that have been reclaimed by banks when the previous owners have been unable to repay their housing loans. Under such circumstances the house is taken over by the bank which will thereafter put it in the market for sale at a much reduced price than its actual worth. As these properties are owned by banks they are considered to be one of the safest investment options. Another advantage of buying an REO property is that they have a clean history without any pending taxes which makes them a very safe a viable deal on the whole.
Fixer upper homes are also a type of foreclosure homes that have currently become very popular in the real estate market. These houses comprise properties that have been in the market for a long time and are not in the best of conditions and therefore require. This feature which makes them highly negotiable and they are therefore sold at unbelievably reduced prices. As lenders are especially keen on disposing of properties that have been foreclosed for a long period of time, fixer upper homes offer some of the most lucrative prices in the market. A buyer on purchasing a fixer upper home can carry out some renovations and resell it at a much higher profit in the market immediately or use it for his residence as well as a long term investment.
Apart from investing in properties that have been foreclosed, home buyers can also make a lucrative deal by going for a pre-foreclosed one through the process of short sales. These comprise of properties that are facing an impending foreclosure. At this stage the lenders are more than keen on accepting a suitable offer even if it is highly reduced as it saves the sellers from spending more money on the process of foreclosure. Foreclosure homes are also sold through auctions or public sales which are also a very viable platform for finding prime property deals at bargain prices.
With a wide range of affordable housing options available under foreclosure homes, investing in these properties is a highly lucrative and sound real estate venture on the whole.
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Fiona Livnat is an author with expertise in real estate foreclosures. She has over ten years of experience in writing about foreclosure homes . Her commitment to help people is reflected in her writing. For more details please visit www.ForeclosureConnections.com