Month: August 2008

Is a HUD residential foreclosure a straightforward buy?

The foreclosure market is full of acronyms and HUD is only one of many. HUD residential foreclosures are properties on which the previous mortgage was insured either by the Department of Housing and Urban Development (HUD) or by the Federal Housing Administration (FHA). The previous owner would have defaulted on his or her mortgage payments to the lender. Under the terms of the mortgage, the lender has the right to seize security to the value of the loan. Usually the only property available to this value is the house.

What is seized real estate and is it a good buy?

Seized real estate is put up for auction on a regular basis by a wide variety of organizations including the Internal Revenue Service (IRS) and the US Customs Service. Some seized properties are foreclosures brought about by default on mortgage and loan payments, others are brought about by criminal prosecutions against tax defaulters and fraudsters.

How to sell foreclosures for a profit?

Rule No. 1. Make a smart buy

Making a smart buy means that you must know your market. Although foreclosures are always marketed as being an inexpensive buy, it pays to research to locality as thoroughly as you can. Get to know the real-estate brokers locally and find out what similar properties actually sell for. The asking price is not always the true value. Values also move around depending on the development of highways, shopping malls and housing projects so it pays to be up-to-date.

How to recognize a good deal in foreclosures?

The foreclosure market can provide some good value opportunities to acquire a property either for investment or as a home so long as you enter the process with your eyes wide open. Because the last owner may have suffered financial problems, the building will not be in prime condition and could need substantial repair or renovation. A good deal for you depends on how you will use the property and the skills and resources that you can deploy to restore it back to pristine condition.

How to find the right foreclosures?