| Did you know that you can save tens of thousands of | | | | not a real estate investment firm. They are simply not |
| dollars on the purchase of your home by investing in a | | | | in the business of residential real estate and have no |
| foreclosure or preforeclosure property? When you | | | | interest in the home other than to recoup their |
| are trying to purchase a home for the first time, and | | | | investment. |
| you have limited resources and limited funds, it is | | | | How does this benefit you? Well, more than likely the |
| particularly important that you get the most "bang for | | | | previousowners of the property have been making |
| your buck". | | | | payments on it for some time, bringing down the |
| One way for a young family to get the most home for | | | | amount the bank was owed and increasing the equity |
| their money is to purchase a "distressed" property. | | | | in the property. Since the bank is only concerned about |
| With research and due diligence, you may just end up | | | | recouping what they are owed and not really |
| with a larger or nicer home than you thought you could | | | | attempting to make a profit, then you can essentially |
| afford, but without the extra price tag. One way to | | | | reap the benefit of the equity in the property and |
| accomplish this is by purchasing a property that is in | | | | purchase the home for what is owed which is likely |
| foreclosure. You may want to look for an REO | | | | well below current market value. |
| Foreclosure. | | | | This approach while simple in theory does require |
| What's an REO Foreclosure? This stands for "Real | | | | research, time, fixup, and perhaps even cash upfront. |
| Estate Owned", or in other words, property that was | | | | This approach is not for everyone, but if your situation |
| foreclosed upon by the bank holding the mortgage, and | | | | allows for it, you may be able to snag a great deal on |
| now belongs to the bank. But, the bank is a bank and | | | | a nicer home than you could otherwise afford. |