With the economic down turn, many have lost their jobs or taken a pay cut. With these measures, the repayment of mortgage loans has also suffered. For many in America, the result has been delinquency and, finally, foreclosure. However, the loss of one is the opportunity of others; such foreclosed properties are good deals for many who are seeking homes within a limited budget. For the cash-in-hand population, the choices can be wide and really attractive. The only factor is that there should be an experienced realtor guiding you through the maze of opportunities.
There are some good advantages of buying a foreclosed property. One of the vital aspects for the lender is to be able to sell the property quickly at the best price; time is of the essence. Therefore, the push would be from the lender as well. This definitely works for the purchaser in more ways than one.
In fact, some firms have a separate manpower arrangement behind these properties, so that these are pushed up faster. The purchaser therefore has fewer headaches since the essential elements of the house and the paperwork are all clear. Most of the lenders are banks and hence the title clearance is usually not a problem (since the owner is now the bank), and the paper work is accurate and fast.
Usually these properties cannot sit on the records of the lenders for a long time; the banks or lenders would loose money every month. Hence, most of the time these properties would be offered at a price lower than the existing fair price of the equivalent property. On many occasions, the lender also ensures that the taxes, touch ups, other paper work and eviction, etc, are already taken care of.
The risk in buying such homes is usually very low, since the title is clearly with the bank and it is transferred to the next owner. For that matter, the down payment also is more relaxed then it is with other dealers. However, it would be advisable to accurately know the fair price value of the property from a seasoned selling agent first, before sitting down to negotiate.