| There is no better time to invest than when the | | | | price by the bank. The bank will most likely accept an |
| market is at a low. Buying low most of the time will | | | | offer that ranges between the original mortgage |
| assure higher profits from that investment at a later | | | | balance and their listing price, if it has been |
| date. Real estate is no different. Purchasing foreclosed | | | | under-priced. |
| homes has now become a lucrative business. With | | | | * Ask how many interested parties are there for the |
| today's economy and high unemployment rate, the | | | | property. Competition drives the price up. If there is |
| market is becoming saturated with foreclosures. If you | | | | none, you can get it for much less. |
| have the money to invest, then it would be a good | | | | * Get a pre-approved letter stating your ability to pay |
| time. Looking over free REO listings is a good way to | | | | the loan from the bank that is offering the sale. You |
| get started to find the property that may help you | | | | don't have to use them, but they will know that your |
| make money when very few others are able to at | | | | offer is sound if they decide to accept it from you. |
| this time. | | | | * Be sure to look at the actual value of the property. If |
| The bank owns the properties that are referred to as | | | | the appraisal comes in much less than what you pay |
| REO listed properties. The bank is trying to sell them | | | | for it, you may have trouble getting a loan for the full |
| because the bank really can't do anything with | | | | amount. If you can pay the difference, that's great, but |
| property. It deals in money. So, if you find a property | | | | most people won't want to do that. |
| that has been listed in the free REO listings and you | | | | If you win the bid and there are some repairs that |
| wish to buy it, then you must do some research to | | | | need to be made due to the home inspection, that |
| make sure your decision is sound. Some things to be | | | | would be the time to negotiate with the bank for |
| aware of when considering making a bid on one of | | | | making them before the sale is final. The most |
| these properties are the following: | | | | important advice when looking through free REO |
| * Get the history of the property. Check this with the | | | | listings is to do your homework. |
| Trustee's Deed and compare this price with the listing | | | | |