Foreclosures & Pre-foreclosures - Advantages and Disadvantages
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.
The timing for researching on a great deal for a new house couldn't be better then it currently is, but first you should be aware on the pros and cons of purchasing homes through a government auctions as compared to the standard way using a realtor.
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 of the homes are in great condition for what you pay.
- Variety and selection is better then it has ever been.
- 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).
- Some insurances are optional. It could save you hundreds a month.
- Landlord or resell venture opportunities.
- Not as risky as stock investing, plus you will own something of physical worth.
Disadvantages:
- A mortgage could be hard to obtain, unless you have borrowing leverage
- You need to be aware of any existing liens, judgements, or unpaid taxes still on 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. - 23218
The timing for researching on a great deal for a new house couldn't be better then it currently is, but first you should be aware on the pros and cons of purchasing homes through a government auctions as compared to the standard way using a realtor.
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 of the homes are in great condition for what you pay.
- Variety and selection is better then it has ever been.
- 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).
- Some insurances are optional. It could save you hundreds a month.
- Landlord or resell venture opportunities.
- Not as risky as stock investing, plus you will own something of physical worth.
Disadvantages:
- A mortgage could be hard to obtain, unless you have borrowing leverage
- You need to be aware of any existing liens, judgements, or unpaid taxes still on 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. - 23218
About the Author:
To find an updated list of foreclosures/pre-foreclosures on the best government auction sites click government auctions review or Bank Foreclosures & Pre-foreclosures
posted by X - Men @ 6:51 AM
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