Foreclosures!!!?


Question:
I have a house, I plan to sell soon. What are foreclosures? what are the Pro's and Con's? is it worth it buying and living in one?

Answer:
A foreclosure is just a home that has been released back to the bank for non-payment. The pros would be that you could most likely get a discount on the home considering the bank would like to get rid of it asap. The only con is that getting lending for these homes I believe differs a bit in that you can only get a conventional loan on them. I may be wrong about that, but this is what I recall.
a foreclosure is a home that the bank has taken posession of because the person didn't or couldn't pay the mortgage.

Pros:
-Buy below market value
-instant equity

cons
-buying as is and where is
-most likely in need of repair--the bank was taking the home so the person may have caused damage
-Lenders have strict rule on the home's condition
-hidden problems?
Are you trying to buy a home for yourself or for investment? Foreclosures can be profitable since there will be many homes in foreclosure now due to the real estate market's lull in demand. But, it is dangerous because a lot of it is sold "as is" with no warranties. The key is your due diligence and your persistence.

You can buy the book below for more information on how to find foreclosures and how to research it.
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