What's the difference between foreclosure homes and fixer upper homes?
Question:
Fixer uppers are generally homes in disrepair that the owners have elected not to fix for financial or other reasons. These can be a 'buy' or a 'nightmare' of hidden problems.
Foreclosures are homes that the bank has repossessed for non-payment of mortgage. They can be in disrepair as well. Usually if someone cannot pay the mortgage, they can't pay the upkeep either.
Fixer up means it is sold as is with many things that might need to be done.
foreclosure is becasue you did not make you payments and the bank is selling it.
foreclosed homes can be fixer uppers but not necessarily...and not all fixer uppers are sold by home owners, just look in the daily ads..foreclosures happen to many different homeowners, high and low end
a foreclosure is when the owners can't make the payments
and the lending institution repossess the property--
fixer uppers are usually sold by the owner/owners
Fixer uppers can sold by the owners and sometimes not properly maintained for a long period of time. Many hidden problems in these homes.
Lots of home are in foreclosures and quite a bunch of them, at least in my area, are new houses, fresh paint, new appliances etc. While fixer upper homes are generically old or run down homes.
The best value if you are young and you are able to fix homes is to fix a problem home and sell it for higher or rent it out.
If you are interested in this business (either one), I suggest you read up on some books on how to start out, how to do your research; and what risks/rewards are out there. Suggested reading would be Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa. If you are looking for homes that are fixer uppers or foreclosures, you can also find listings of them for sale at:
http://www.investingwithoutlosing.com...
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