What and how do foreclosures work?
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If the home is listed with a Realtor, then simply contact the Realtor and talk with them about the home, set up an appointment to walk through the home and find out why it is only being sold for 39-40k. Chances are there are good reasons as to why it is being sold this much lower than market value. Usually if something sounds way too good to be true it will be. However, it never hurts to investigate further. If the home is not being sold through a Realtor you can contact the bank that owns the home and talk with them about buying the home. If the home is going to be listed for auction then chances are the home may go for more than 39-40k and that may just simply be the starting price (which would still be much lower than it should be if the home could be worth 223k). If this is the case and the home is scheduled to be auctioned off, you may have a hard time accessing the home and actually checking out the intererior and the condition of the home.
When dealing with foreclosure homes the toughest part about buying them is getting the financing. Financing a foreclosure home is not always nearly as easy as it is to finance a regular home. Usually foreclosure homes are run down, need work, or need improvements to make them habitable. Most lenders will not lend on homes that are in this condition. Also, your lender will require an appraisal to be done on a foreclosed home. If the home is being sold through auction you will not be able to get an appraiser into the home (legally). You will have a hard time finding a lender who will lend on a foreclosed home that they can not even have a full appraisal done on. Foreclosed homes can be a great source of earning instant equity and buying a nice home for a much more reasonable cost, but you must do your homework first and truly investigate the home and find out as much about it as you can. If you can obtain a home inspection this is very highly recommended on a foreclosed home. Best of luck and I hope this information helps out.
Look up the address on a real estate web site. Or contact the bank or loan holder that is foreclosing. Or E mail me the address and I'll look it up. I might buy it at that price too.
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