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:
- Price is the number one reason to purchase a foreclosure.
- Many homes are in good condition for much less than their market value.
- The selection range of home available to choose from is extensive.
- No middle man (Realtor) to have to go through or additional fees to pay (although you should consult with someone along who can inspect the home(s) for you).
- Insurance is optional. Results in additional monthly savings.
- Great investment opportunity (i.e. rent out or flip that house)
- Not as risky as stock investing, plus you will own something of physical worth.
Disadvantages:
- Borrowing money may be more difficult, unless you have strong credit.
- 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.
About the Author:
To find 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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