Everyone is aware of the current real estate crisis and increased foreclosures going on in the States. But what many people may not be aware of, is that there are some great values available if you are looking to purchase a house or property. Whats different now then in the past, is that not only are numbes of foreclosed at all times highs but the quality is much higher as well.
If you are considering buying a foreclosed home from a government auction then you couldn't be lookin at a better time then now. Before you do though you should be aware of the advantages and disadvantages of buying foreclosures over using a realtor for a non-foreclosure property.
Some of the pros of purchasing a foreclosed/pre-foreclosed home are:
- The main advantage in purchasing a foreclosed home is the below market price.
- Many homes are in good condition for much less than their market value.
- Variety and selection is better then it has ever been.
- No Realtors to have to go through or agency fees to pay (although you should still get advice from someone who knows something about real estate).
- Some insurances are optional. It could save you hundreds a month.
- Great investment opportunity (i.e. rent out or flip that house)
- Less risky then the stock market, as you own something tangible
Disadvantages:
- A mortgage could be hard to obtain, unless you have borrowing leverage
- There may be existing liens or unpaid taxes against the property.
The most important thing is to make sure that the home you're interested in is clear of all liens. You should also find out in advance what payment options the government auction will allow, and if required have your bank loan in place ahead of time. Make sure you have some decent cash saved up just in case, just as you would for purchasing a house through an agency.
Government auctions are being held all around the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet along with detailed listings on the homes that will be for sale. Purchasing a home through a government auction can be a very rewarding adventure but doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment.
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To find an updated list of foreclosures/pre-foreclosures on the best government auction sites click government auctions review or Bank Foreclosures & Pre-foreclosures
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