| When it comes to choosing between REO | | | | up free and clear property for as little as a few |
| foreclosures and tax sale foreclosures, there is one | | | | hundred dollars. This can't be accomplished at the |
| factor that determines which is the better investment: | | | | auction, due to competition and various other reasons, |
| the mortgage. | | | | but by contacting the owners at a specific point in the |
| Tax sale foreclosures almost never have a mortgage | | | | process, you can often get unbelievable deals. REO |
| by the time they make it all the way to the auction. | | | | foreclosures simply can't be bought this way, and if |
| Mortgage companies protect their interests by making | | | | you've ever attempted mortgage foreclosure investing |
| sure taxes are paid on a property, even if the owner | | | | you understand why. |
| stops paying them. While by the time you buy REO | | | | By buying tax sale foreclosures directly from owners, |
| foreclosures from a real estate agent or bank, they | | | | you can inspect the property before buying, wheel and |
| don't have a mortgage, the fact that they once did | | | | deal with the owners, and get a much steeper |
| means that your buying price is going to be much | | | | discount. REO foreclosures will be being sold much of |
| higher than in the case of tax sale foreclosures. The | | | | the time by real estate agents, who will be trying to |
| REO foreclosure's bank will try to recoup as much of | | | | get top dollar for the bank and to line their own |
| the mortgage as possible in the selling price. | | | | pockets with a bigger commission. The clear winner |
| With tax sale foreclosures, it's not uncommon to pick | | | | between the two is tax sale foreclosures. |