I'm sure you're aware of the real estate and foreclosure crisis going on in the United States. Because of this, there is an excess of homes on the market. Obviously some properties will be run down in unappealing neighbourhoods as usual, but what's different this time is the surprisingly increasing number of well kept and even executive style properties that are up for sale for pennies on the dollar.
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.
Here are some advantages to purchasing a foreclosed or pre-foreclosed home:
- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.
- Many of the homes are in great condition for what you pay.
- The selection range of home available to choose from is extensive.
- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).
- Insurance is optional. Results in additional monthly savings.
- Good property investment to rent or resell.
- 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 main caution is to properly check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank. As with purchasing any house if you have enough cash handy (who does) that makes your profit potential much greater.
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.
About the Author:
To locate an updated list of foreclosures/pre-foreclosures on the top government auction sites click government auctions reviews or Bank Foreclosures & Pre-foreclosures
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