Select Foreclosure Source Magazine answers a question that many may still wonder:  What exactly is a foreclosure?

“A foreclosure is a property that has been taken back by the bank.  They are also known as an REO or Bank Owned Property.  They are usually marketed at the lowest prices in the market.

 As with any great deal there are always some things you need to consider.  Occasionally you can move right into a foreclosure but more often than not the home can be pretty rough.  Either as a result of a disgruntled previous owner or vandalism and theft.  It is pretty common to find these homes in need of floor coverings, cabinet doors, counter tops, light fixtures, toilets, appliances, drywall repair, paint, landscaping and more.

 The downside is it will need to be fixed before you can move in and you will need to have the budget to get these issues handled.  This will take some time, resourcefulness and a bit of knowledge.  The upside is that when it is done you will have a home that is now updated the way you like for a great price.

 The foreclosure properties are under high demand so a great deal tends to draw buyers and a listed price will often end up being lower than the sale price as a result of bidding up by buyers.  It is important that you know the market or have a real estate agent who can help you.  Escrow times are 30 days or less and inspection periods are 10 days.  The banks rarely pay for inspections or repairs.”

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http://www.selectforeclosuresource.com/

Filed under: FORECLOSURES