How to Buy Foreclosed Homes in America
About one in every 381 home owners in America received a foreclosure filing in August, 2010, according to online foreclosure listing company, RealtyTrac. The average price nationally for these homes was about $175,000. While home buyers can save money buying a home in the foreclosure process, they should be aware of their rights and obligations.
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Buying Houses in Pre-foreclosure
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A house in the foreclosure process can be purchased directly from a homeowner. The homeowner transfers the title to the buyer who assumes the mortgage and any outstanding debt associated with the home. For a fee, several websites list homes in pre-foreclosure, including www.preforeclosure.com. Home buyers should get an inspection of the home. While the seller won't likely have money to make repairs, the inspection will notify buyers of any investment they will need to make in the home.
Buying a House at Auction
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Home auctions are listed in local papers or online at websites such as www.RealtyTrac.com or www.Auction.com. Home buyers cannot get a home inspection or perform a title search unless the home is purchased before the foreclosure process is completed. Buyers are responsible for any outstanding taxes or liens owed on the property. An attorney or online service can help buyers determine these obligations before the auction.
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Buying a Bank-Owned Home
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While prices are usually higher for bank-owned homes, these properties offer benefits not available when buying a home in an auction or from a homeowner in pre-foreclosure. Buyers can apply for financing for bank-owned homes and can have a home inspection.
Buying a Home Through the U.S. Government
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The Department of Agriculture, Department of Veterans Affairs and the Department of Housing and Urban Development list government-owned properties on the Web at www.homesales.gov. Buyers must work with a real estate agent to submit a bid. Those purchasing properties as a primary residence get first priority to purchase homes. If the home is not sold by a certain time, investors can purchase the homes. While homes are sold in "as-is" condition, the government agencies usually perform detailed inspections on the properties and provide reports on the Web listing.
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