By Leonard P. Baron, MBA, CPA and author of “Real Estate Ownership, Investment and Due Diligence 101 – A Smarter Way to Buy Real Estate” – http://www.ProfessorBaron.com and a Guest Blogger at Your Edge in Real Estate – Zillow.com
If you want to take advantage of the market and try to pick up a great deal on a foreclosure, and yes, you have enough credit or cash, there are few things you should know before making a purchase.
First of all, what is a foreclosure? It’s a bank-owned property, commonly called real estate owned (REO). For whatever reason, the original owner stopped paying their mortgage so the lender (e.g., Bank of America, Wells Fargo, Fannie Mae, etc.) legally repossessed the property and took ownership.
Next, it will be listed for sale by a local real estate sales professional in the Multiple Listing Service (MLS) along with listings of traditional sales and short sales. We are not talking about properties sold via a foreclosure auction at the county courthouse; those make up a very very small percentage of bona fide real estate sales to third-party buyers like you. Plus, they are extremely high risk, so let’s leave those to the pros who take huge risks.
When Foreclosure is Not a Good Deal
To learn more, here’s the rest of the article that I wrote for Zillow. So grab this link and read-away…..Thanks and have a great day. Leonard