It’s hard to read the news today without some reference to the US Foreclosure Crisis. The increasing number of default and underwater borrowers is causing havic in the real estate and mortgage world. With the current housing recession, these foreclosure numbers don’t appear to be dropping any time soon. Foreclosures represent a sad and stressful time for those involved, but they also represent a great opportunity for real estate investers and home buyers looking to get a good deal on foreclosures for sale.
Pre-Foreclosure Homes and Short Sales
When properties are in distress, they are usually sold as Short Sales. These are pre-foreclosure properties that still actually have ownership held by the borrower. These foreclosure properties are easy to search as they are almost always listed on the MLS. Purchasing pre-foreclosure short sales can be difficult. It usually involves patience and a long waiting process as banks must first approve a short sale before the home is sold at an amount less than what is owed.
Foreclosure Auctions and Trustee Sales
If distressed properties are never listed, or if they are unable to sell they will appear in the public records and will be available for sale at a Foreclosure Auction or Trustee Sale. Purchasing US foreclosures at trustee sales can be very risky. These properties are sold as is, and without any warranty. While there are some deals available at foreclosure auctions, in the current market, these are rare. Nearly one in three US home owners is underwater, meaning they owe more on their homes than they are worth. The starting bid price at trustee sales is usually the amount owed on the primary loan. In today’s market this is often above market value. While some properties can be purchased at foreclosure auctions for outstanding deals, most cannot.
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Foreclosed Homes – REO Properties, Bank Owned Foreclosures
The easiest type of foreclosure to search for and to buy are: REO’s, HUD Homes, and Bank Owned Homes. These are properties that were not purchased at the foreclosure auction by private buyers, and are taken back by the bank to be sold. The banks generally want to get rid of these properties quickly, so price them below market value for a quick sell. These properties can generally be purchased using traditional real estate methods, and are not much more complicated than purchasing real estate from an individual seller. Foreclosed Homes, are nearly always listed by real estate agents and can be found for sale on the MLS. Search for US Foreclosures now by clicking the link below.