Are foreclosures really more bang for your buck?
We were all first-time home-buyers once. Can you remember the dream that you had about your first home? Can you remember the reality when you sat in front of the real-estate agent and he laughed when you told him what you were looking for and the amount you were willing to pay? Times don’t change much but the options are changing all the time. What were well kept secrets about the bargains to be found are now becoming public knowledge. The American dream of owning a home of your own that is larger than a broom cupboard is a reality.
The foreclosure market is now an open book to first time buyers as well as long-toothed investors. This is a way to acquire real bargains, sometimes at incredible prices well below market value. All you need is a bucket-load of energy and the skill (or savings) to transform what is termed a “distressed” property into your dream home. The best bargains are the result of neglect, poor maintenance and vandalism. Substantial repair and remodeling may be necessary to bring the properties up to standard but isn’t that what being young and vigorous is all about?
It is true that, now and again, properties can be got for almost half their normal selling price although the average discount is a lot less, say 5% to 10%. Foreclosures are the product of defaulters on their mortgage payments. The inevitable seizure of property has happened and the lender has to realize the best value he can get to offset his costs and his expenses. Although it is a tragic situation for the original owner, someone must benefit from situation and there is no reason why it can’t be you.
The information is readily available on the internet and it is growing year-on-year. You can home in on your chosen neighborhood by zip code and browse through the details online. Comprehensive contact information is provided to allow you to take the next step towards acquiring your dream home for the best price.
Government agencies like the US Department of Housing and Urban Development (HUD) provide a clearing house for foreclosure properties biased towards owner-occupiers rather than developers, landlords and investors. They provide attractive financing options and a sealed-bid electronic bidding system through a country-wide network of registered real-estate brokers that gives everyone an even playing field. Banks also deal in foreclosures although they call them real estate owned (REO) properties. As well as offering the properties at well below market value, banks may also offer low loan costs, financing with no points and no prepayment penalties on the REO home you buy from them.
To a first-time buyer $10,000 can mean the difference between the cost of a shoe box and living in luxury so the foreclosure market, even at its worst has a strong appeal. As you look more closely at foreclosures, you’ll see that there are even more possibilities available, some carrying more risk but with even greater payback. This is a market where fortune favors the brave and there is the potential to get considerably more bang for your buck!