5 Reasons Why You Should Consider Purchasing a Foreclosure

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New constructions will always be among the most appealing properties in the real estate industry, as they are excellent examples of supply and demand. Since many people are looking to move into a brand-new home, many foreclosures are priced with a significant discount. Continue reading to discover the top benefits of purchasing a foreclosure in 2019.

Bargain buys

Banks are not in business to hold onto real estate. When it comes to REO properties, banks will generally seek to get them off their books as soon as possible. This is one of the many reasons why these homes are typically priced below the current market. Banks will typically wait for several offers on recently acquired properties in order to recoup as much of their investment as possible. One of the best ways to determine whether or not a home is set a favorable price is to compare it to others in the local market. The more you understand about the area, the better you will be able to differentiate the good deals from the bad ones.

Build equity

You can generate a tremendous amount of equity by purchasing a home at a low price point. In some cases, a home may only need a few repairs to increase its value. In other cases, it may simply take for the surrounding neighborhood to improve and become more appealing to buyers. Regardless of the circumstances, it is fairly simple to buy homes under market value and flip them for a profit.

Move-in ready potential

While this is certainly not always the case, some foreclosure homes are move-in ready. When most people think of foreclosures, they envision a decrepit property or a home that was vacant for a significant amount of time. However, there are foreclosure homes available today with zero faults.

Get more for your money

Many buyers are surprised to learn how much house they can get for their money with a foreclosure listing. While real estate investments often differ on a case by case basis, you may be able to find more than what you were looking for by researching foreclosure listings.

Enjoy a larger location selection

If you have your heart set on a particular neighborhood, it is important to explore all possibilities in the area. You may discover that there is a foreclosure property is waiting for you around the corner.

HUD Foreclosures

HUD foreclosures and VA Foreclosures are some of the best homes to buy when price is part of the equation. As with most Americans, price is always a concern. If not buying the same house for less, why not buy more house for the same dollar invested? When looking for a good deal it is hard to do better than the VA or HUD foreclosures market. The simple truth is that there are just more VA and HUD homes on the market, as they represent such a large number of mortgages that are generated each year. This translates into more foreclosures just by the magnitude of difference between all others comparing to the two largest.

The two largest also being government owned and operated means that they have less time to wait to make money back on the home. The FHA is especially known for selling HUD homes for less than the average sales price in a given area. FHA foreclosures represent a fraction of HUD but they are still a significant number of homes and both should be considered.

VA (Veterans Administration) and HUD (Housing and Urban Development) have different and unique opportunities for the buyer. Both are often forgiven for the local taxes normally associated with the purchase of a home (this is on a county by county basis). Be sure to ask the local title company or escrow company to look into it for you before closing as this is often missed due to their are not used to dealing with the 2 to 3 percent of the market that VA and HUD foreclosures represent.

Free Foreclosure Listings

ForeclosureWatch.com is a website that simplifies the process of finding foreclosures and HUD properties. Everyone thinks they are a real estate web surfing pro until they search for foreclosure homes and stumble upon a numerous sites that want to charge a fee to see their listings. With ForeclosureWatch.com that’s not the case. When searching for HUD properties or a home finding website for foreclosure it is important to know what you are looking for. It is important to use a niche company that specializes in foreclosures like ForeclosureWatch.com. We have put together 2 tools that have made the real estate search process of our website much easier to navigate. The Homesearch online tool is filled with foreclosure lists and free listings of hud homes for sale. Most of our users start with a broad search with the homesearch online tool to see the most HUD properties and foreclosure lists in your area and narrow their search down with the Homefinder online tool. The homefinder online tool is a custom filter system that we breakdown the area based upon filters such as convention and foreclosure listings. This give you the option to filter out conventional listings and focus on just the foreclosures in the market. We thank you for making us Americas top home finding website for foreclosure and Hud properties. Free listings of hud homes for sale are hard to come by but should always be free and that’s the way things are going to stay on our website.

Foreclosure Listings Increasing

As the market settled after the mortgage meltdown foreclosure listings also settled and fewer homes were on the market with a placard reading “Bank Foreclosure” in big red lettering. This was a good thing for the entire real estate market. Having an abundance of foreclosures brings the entire market down and it makes it harder for home owners, who would like to move, to get the appropriate price for their home as a similar home down the same street was sold for substantially less and the appraiser is using the foreclosure as a comparable sale.

This is just one of the problems when there are too many foreclosure listings in any area. Another issue is the television set that sits in everyone’s living room harping about the price of homes based on the number of foreclosures and this constant barrage of negative information makes most people sit on the sidelines waiting for the market to either implode completely or to correct itself. Meanwhile while they wait, others are buying foreclosure listings and making great investments.

Whatever the reason, a market can only handle so many foreclosure listings at any given time. The more foreclosures, the lower the market gets and this is a lesson the banks that were foreclosing and selling off realized too late. The market and their investments would have been better off if there had not been a rush to divest themselves of the toxic assets made more toxic by their own actions.