| It is an art to buy foreclosures profitably. With the | | | | something new in recent American history. Buying |
| foreclosure crisis sweeping the nation the real estate | | | | foreclosures really needs a special type of expertise |
| market is flooded with houses begging to be sold. But | | | | because of many pros and cons. |
| the market is not just dull - it is depressing. | | | | Buying foreclosure homes covers a wide range of |
| It is a buyer's market because first of all supply is | | | | houses - houses that have defaulted and are in the |
| outstripping demand and continuous entry of | | | | pre-foreclosure stage, foreclosed houses in the court |
| foreclosed houses is leading to further fall in prices. | | | | auction and those that have failed in the sheriff's sale |
| Sometimes 50% discounts are being offered. | | | | and have been repossessed by the lenders. |
| The second reason for a dearth of buyers is that the | | | | The houses in the pre-foreclosure stage are the best |
| credit crunch has led to a drying up of mortgage | | | | bargains. This is known as short sale wherein the |
| sanctions. For good reasons the lenders are reluctant | | | | lender and the borrower come to an agreement about |
| to loosen their purse strings. The limited numbers of | | | | avoiding foreclosure and selling the house. |
| mortgages that are being sanctioned have strings | | | | Foreclosures are costly for the lender and damaging |
| attached. | | | | for the credit records of the borrower. Even if the |
| The third reason is the high numbers of unemployment | | | | lender suffers a loss it is better to opt for a short sale |
| and joblessness. Without jobs or with reduced pay | | | | - money and time is saved. For the buyer these |
| who will buy what? People are somehow struggling to | | | | houses are usually in shipshape condition because it is |
| survive. | | | | to the interest of the occupant to keep the house in |
| Thus at the moment the prospect of buying | | | | good condition. |
| foreclosures seems to be profitable. Foreclosure is a | | | | Buying foreclosure houses can be tricky if it is actually |
| process, mostly judicial, by which the lender forecloses | | | | in foreclosure. The occupants usually do plenty of |
| on the house that has been mortgage to get back | | | | damage - venting their frustration on it. The buyer does |
| unpaid dues. The lender may be the bank or | | | | not the opportunity to thoroughly inspect it. The |
| government tax agencies. The foreclosure leads to a | | | | minimum-bidding price might be defective because it |
| court auction where the house is given to the highest | | | | includes liens and hidden repair costs. The |
| bidder. Since prices are at a record low it seems the | | | | repossessed houses are lien free, one can inspect |
| buying foreclosures is the best investment. Buying | | | | these but here again the repair may only be skin deep. |
| foreclosures may be the best investment but it is not | | | | Surprises may pop up late. |
| easy. Buying foreclosures is not easy even for those | | | | For the plucky and daring this is the best time for |
| realtors who are not conversant with the trend of the | | | | buying foreclosures. |
| past two or three years. What is happening is | | | | |