Buying real estate has always been considered as a good investment. Still, there are factors that help us determine if this investment is more favorable than we think. It is also important to take into consideration certain points, such as the type of property (if you are going to live in it or investment property), physical condition (if the property needs or not under) the area (if located in residential, commercial, etc..) price (if the price is competitive compared to recent sales in the area). These are all factors that can help us determine whether the investment is advantageous in the short or long term. Now there are properties that are commonly known as “foreclosed homes.”
The “foreclosed homes” are those properties that have been repossessed by banks, investors, or by the government to those buyers who defaulted on the obligation to pay the monthly mortgage on the terms of his contract, and failed to remedy the debt by the deadline.
When the homeowner has not made their payments for a period of 90 days, the bank then records the debt default through the “notice of default” or “notice of default” in the public records of the county.
After making this record, the bank officially started the foreclosure process that takes about 90 additional days. Now it is important to know that the homeowner has up to five days before the date scheduled for the auction to remedy your debt. If this does not happen, then proceed to the official auction of the property. At the conclusion of the sale, the property will pass to the new owner, or if there was a decent bet, the bank returns to power. Generally these auctions start with a minimum bet.
These “foreclosures” in certain cases are inspected by the owners of these properties banks, to be evaluated and make repairs as needed and resulting from this most attractive way to buyer or investor. Keep in mind that the costs of repairs are usually reflected in the asking price. There are other banks that prefer to sell these properties in their current condition without the need for any repairs.
When buying and selling a home is made, the owner has the responsibility to provide a report on the current condition of the property.
That is, tell the prospective buyer about the problems that exist on the property which is spread in specific, accurate and simple. This is not the case of banking and / or entities HUD. These entities are excluded from this report provide the purchaser.
But even when a home repossessed by the bank or HUD required repairs, and not all needed, your purchase is still a real opportunity. Importantly, the price the bank or HUD requesting for housing, reflecting the fact that the buyer will have to invest money to make improvements.
It is very important that you consider an inspection on the property through a professional inspection company. This company will help you assess the current condition of the property you are purchasing and determine if it is an advantageous investment and favorable to you.
For information about this type of foreclosed homes there are different sources of information, such as real estate agents, who have access to the multiple listing service, newspapers in each city or county where you plan to purchase a property.
Remember that if you are interested in obtaining this type of property, whether for your first home or investment, it is very important to seek counseling with a professional who has experience in the sale of “foreclosed homes”, and in this way avoid future problems and / or very high and unnecessary expenses on your investment.