Foreclosures - is it really an opportunity?Topic: Mortgage
Let me introduce, I am a real estate agent, so I am always in search for great deals on homes. I can share my experience with you, because I think everyone should know about. As a direct result of the sub-prime lending spree that has gripped the nation in the past years we are now seeing a great number of homes being foreclosed on and sold for amazingly low prices. This gives anyone interested in buying a home a great opportunity to get them a home for less than they might expect. Foreclosures are not too hard to find either, any realtor or agent should easily be able to find some great foreclosure deals and there are many who specialize in foreclosures and short sales.
Here are a few realities about buying foreclosed properties. Typically a home goes into foreclosure when the current owner ceases to pay the mortgage or other home bills to the point that the bank or lender takes possession of the property to recover their losses. Now, many time when buying foreclosures, buyers who are experienced in foreclosures will deal directly with the home's owner in an attempt to purchase and take possession of the home before the proceedings are finalized. This usually involves taking over the mortgage. This can be a complex process so make sure that when you get involved in a foreclosure purchase that you have both an agent and a lawyer who knows the process. The processes will vary from state to state so having professionals onside that are familiar with the applicable laws is essential.
Foreclosures are ideal properties for home flips. As you can typically get a foreclosure at less than market value it is easy to see how the math works. An additional bonus to this is the fact that buying low leaves you more money to do renovations and improvements to any home. The whole concept of home flipping is based around the buy-low, sell-high idea. There are few opportunities as attractive for the buy-low aspect of the flip as foreclosures. So if you are looking for a flipping property or just want the best deal possible on a new home, take the time, explore the possibilities be sure you’ll find some fascinating deals.
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Not having a car pamnyet is always nice.Another thing to consider is that you can write off mortgage interest but not car loan interest. So you'd be better to have more loan on your house and less loan on your car, if you see what I mean.Bandit makes a good point, though. Equity in your home gives you power, so you want to be careful not to remove too much of that equity.
refi, buy don't take money for the car. Doing that finances the car for a much lngeor period than if you finance the car itself. Also, it might be a point that you would want to dump the car ?I agree cash is king for purchasing and making the best use of money, but not with long term financing. Lower the house payment to as low as you can on a fixed rate and keep the equity in the house. During downturns, there will still be equity and borrowing power. Get underwater and all your options are lost.
Weeeee, what a quick and easy slouiton.
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