Can someone explain how one would go about purchasing a foreclosure property and how it works?
Question:
Answer:
Sure. Well first you'll have to decide whether you want to invest in a foreclosure, pre-foreclosure or an REO. Confused yet?
A pre-foreclosure would be going directly to the owner and hashing out a deal before they get a foreclosure on their record.
A foreclosure you can purchase at auction and hope for the best price. The only downfall is you will need the financing at the time of the auction in the form of a cashiers check.
Your other option is purchasing an REO which means Real estate owned. The home did not get sold at auction and the bank or lender now has possession of it. You then have to deal directly with them. The benefit here is they may finance the home.
So, now you search for a property. I would use an online site like http://www.foreclosure.com
Found your property yet? OK, now inspect inspect inspect. Make sure you know all the pitfalls of the property before you buy.
There's more where that came from. Do your research. Foreclosure buying can be rather tricky. The site mentioned above does offer some helpful tips.
good luck!
Well easy. you make a bid. depending where it is in the process.
either to the bank or the home owner.
if you need financing, call me 866-578-0050 ext225
ask for Bret
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