How to Buy Homes in Foreclosure

Are you interested in buying homes in foreclosure? Many homes are in foreclosure due to people defaulting on their mortgage payments. Lenders are taking back homes in record numbers and need to empty their inventory. As a home buyer or investor, you can get homes in foreclosure at steep discounts if you know where to look.

Difficulty: Easy

Instructions

1. Go to the courthouse to bid on homes in foreclosure. One thing about home auctions is that you might not actually get a good deal on the foreclosed home. There will be many people bidding and they usually jack the price up. Bidding on homes in foreclosure can also be risky since you are bidding on a house unseen. The property might need a total rehab which can cost thousands of dollars.

2. Go to your realtor to get a list of homes in foreclosure. Find a realtor that is an expert in dealing with homes in foreclosure. They’ll be more likely to know the ins and outs of buying homes in foreclosure and can potentially save you a lot of headache and money.

3. To get the best discounts, sometimes you have to get homes in foreclosure that haven’t been listed publicly. You can find distressed properties listed on craigslist or other property for sale sites. You can also drive around neighborhoods and find homes in foreclosure. You can usually tell from the unkempt lawn that the house is in foreclosure. Contact the owner and try to make a deal with them.

Tips & Warnings

• You can get homes in foreclosure at below market value but you have to watch out for costs to repair the home since previous owners may have damaged the home before leaving.