Stop Home Foreclosure

I’m know you’re in tune to the worries of recession and the real estate crisis going on in the US. This has caused a flooding of foreclosures that is surpassing previous highs. Although you still see older foreclosed homes in run down areas, what’s different during this crisis is the quality of forclosed homes and neighborhoods they reside have drastically improved. Even some of the nice estates in wealthy neighborhoods can be found at government auctions for prices much lower than market value.

There are some great values out there but in order to take advantage of them you should first be aware of both the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method using a realtor.

Here are some advantages to purchasing a foreclosed or pre-foreclosed home:

- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.

- Many of the homes are in great condition for what you pay.

- The selection range of home available to choose from is extensive.

- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).

- You are not required to pay certain insurances.

- Great investment opportunity (i.e. rent out or flip that house)

- Not as risky as stock investing, plus you will own something of physical worth.

Disadvantages:

- A mortgage could be hard to obtain, unless you have borrowing leverage

- You need to be aware of any existing liens, judgements, or unpaid taxes still on the property.

Making sure that the foreclosed home you’re interested in is clear of all debt is one of the most important things you should do homework on. After that, find out what types of payment plans are allowed, and have any required financing in place beforehand. Obviously any additional savings you may have will help.

Government auctions are being held all around the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet along with detailed listings on the homes that will be for sale. Purchasing a home through a government auction can be a very rewarding adventure but doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment.