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Zhi Finance » Buying Real Estate Foreclosures

Buying Real Estate Foreclosures

When you’re looking for a home for you and your family, you’ll come across all kinds of deals, bargains and so-called values along the way. If price is a very specific object for you and your real estate investment, then you may want to seriously consider the value of foreclosed homes. If you are looking to invest in real estate for profit, then you may also want to consider these properties, which are often sold well below the ordinary value of the property because they are in varying degrees of disrepair.

Foreclosures are properties that have been repossessed by the lender because the previous owner was unable to continue making payments on the property. Since these homes are often owned by people who are in financial distress and may have been empty for some time before being sold, foreclosed properties sold at any given time are likely to be in some state of disrepair. The dilapidation of many of these properties is one of the factors that depresses the price. Another factor is that the lender is essentially trying to recoup their investment in the property. For this reason, they are often willing to accept less than the value of the property if that is what is owed on the property.

Why are these properties often in a state of disrepair? Honestly, there are many reasons, but the main culprit in this situation is money. It is obvious that the owner of the home is struggling to make payments or the home would not be in foreclosure. If the note on the property is difficult to begin with, then other issues, such as a leaky roof, worn out carpet or plumbing repairs, have every reason to take precedence over paying for the home.

At the same time, there are some people who are distressed about losing their homes. As sad as this situation may be, some people add to it by intentionally destroying these properties. These homeowners feel they have nothing left to lose, and if they can’t own their property, then neither should the lender. While this is never a good approach, there are many people who choose this path over other options.

In fact, in this case, their loss is actually your gain. The damage they cause to the property, while it may be a hassle, is often not very expensive to repair. Being willing to do this work in order to create a beautiful home for you and your family, or as an investment, can often save significant amounts of money at the closing table or when negotiating the price of a property. Foreclosures can allow families to purchase a larger home in a better neighborhood that they can usually afford. They can also provide a wonderful start to a real estate portfolio.

Despite common claims and Internet ads, you don’t need to buy a list to find foreclosed homes in your area. You just need to purchase the services of a qualified real estate agent and let him or her know that your intention is to purchase a foreclosure or some other property that is well below market value. You may be surprised at the wealth of information and assistance your real estate agent can provide, not only in finding great foreclosures, but also in financing some of the more creative damaged foreclosures you may encounter at insanely low purchase prices.