Why Should You Consider Investing in a Foreclosure?

by | Jun 7, 2012 | Blog, Buying a Home, Short Sells / Foreclosures | 0 comments

In this fast-paced society, people tend to overlook the financial opportunity of buying a second home.  Especially foreclosures.  But with a little help from a Denver real estate agent, you can find the right “diamond in the rough” with the potential for a great return.

What Exactly is a Foreclosure?

Many times people relate the term foreclosure to a beyond-repair house.  Many owners use their property to secure loans against their debts. So if they cannot settle these  financial situations before the deadline, the home goes into foreclosure. The ownership is then transferred from the debtor, to the lender (bank).

What Makes a Foreclosure a Great Buy?

Considering a traditional home buy usually includes many expenses:  remodeling, marketing and etc….  But foreclosures have a fraction of these expenses.  They’re typically not advertised and come in as-is condition.  So these properties will have the same investment value as a  normal sale, but with lower rates. And if the home only needs a little repair…it can be a very worthwhile investment!

Where do I Find Foreclosures?

Banks become the temporary owner of properties until they can be auctioned.  The City of Denver actually provides information on foreclosure auctions, which are open to the public.  If the home does not sell at the auction, the bank retains ownership and handles the listing. Another option: you can acquire the property from the homeowner, before their loan matures. This will take a little extra research, so you’ll want to talk with a Denver real estate agent.  And of course you’ll be helping the homeowner from further financial consequences.

As you can see, finding a foreclosure is often very different from the standard buying process. But with the right knowledge and patience, you can discovery a great home to provide you a long-term return.  With a Denver real estate agent’s support, you can make the most out of your new real estate venture.

Curious to learn more about foreclosures?

Check out more at RE/Max of Cherry Creek’s blog.



Resource:   http://blog.homes.com/2012/04/3-ways-to-buy-foreclosure-properties/

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