Once a homeowner becomes severely delinquent on their monthly mortgage payments, the foreclosure process commences. Prior to the foreclosure process, the homeowner is made aware of their delinquency, and if no attempts on their part have been made to reconcile the debt, their home can them be auctioned off via a public courthouse to recoup back any monies to the lender.
Did you know that one foreclosure property that is purchased at an auction can easily earn you over a year’s worth of investment? You can then see why investing in foreclosure properties is by far one of the most lucrative investments you can make.
Unfortunately, while investing in foreclosure properties is lucrative, finding homes at bargain prices is not always easy given that finding these homes is not always readily accessible to the public.
The Truth about Finding Foreclosed Homes for Sale
Despite what you may hear on television and advertised in newspapers, finding large lists of foreclosed homes is not always as easy as going into your local courthouse. Instead, there is quite a bit of legwork and calling that must be performed before you can access lists of foreclosed homes for sale as well as purchase a foreclosure at an auction.
In truth, the hardest part to buying a foreclosed home is the research involved. However, to be successful in this form of investing, you must be willing to put in the time. Fortunately, the Internet is a great way to begin your search – and many times for free if you know where to look.
What to Look for in Foreclosure Properties
Before you blindly walk into purchasing a foreclosure property, be sure that you are aware of the following:
- Find out the current value of the home you are seeking to buy (in most cases, you can use free tools, the county assessor’s office, or even paid real estate membership websites that provide these types of analytics and more)
- Find out if the home you are interested in is actually in “move-in” condition. Unfortunately, only a small fraction of homes in “foreclosure” status are actually “move-in” ready, while others require a great deal of work before that can become inhabitable.
- Prepare a detailed analysis of the costs of renovations you’ll need to undergo before moving into your property. Be sure to compare this list to the amount of money you plan to spend on the property itself.
Fortunately, with a little patience and research, you can find a great deal on a home that will help you recoup your investment in no time.