Foreclosure home listings are online directories that contain information about foreclosed homes about to go on sale or currently on sale. These are a valuable new tool in the hands of the seasoned property investor. New investors, with zero experience in real estate business, are also coming round to the absolute indispensability of foreclosure home listings in their search for profitable investments.
HUD Foreclosures
HUD foreclosures are properties in the possession of the government. The owner borrowed from a government organization and was unable to repay the loan, so the property passed into government possession.
VA Foreclosures
VA foreclosures are another type of government foreclosure. Here, the property in possession of the government is sold through auctions. The advantage of this kind of auction over other foreclosed property auctions is that you can set the limit beyond which you won’t bid. Most foreclosure home listings also list VA foreclosures.
Bank Foreclosures
If you are a new investor, maybe this is the type of foreclosure you have come across most often. Banks are prime lenders; therefore, on default of loan, the property goes to the banks. Banks either sell the property or auction them.
Tax Foreclosure
Most of us associate foreclosure with mortgage or other loan defaults. But sometimes homes are seized if the owner fails to pay up tax defaults. The property is sold through auctions held by HUD or VA.
Safe Investment
Government auctions are safe, particularly because you can set the limit beyond which you cannot afford to bid. It saves the agency the trouble of holding an auction again if you fail to pay up after winning a bid and you don’t run the risk of paying a penalty or losing your deposit.
Bank auctions are the next best option. Most people purchase foreclosure homes from banks because banks have the most properties to sell and they don’t usually have hidden mortgages/liens that you need to clear once you buy the property.
Pre foreclosure property purchase is the most unsafe. If you want to purchase foreclosure homes from the owner before the home passes into the hands of the lender, you need to look out for hidden mortgages and taxes. New investors should stick to reliable sources of information such as government or private foreclosure home listings or ask a trustworthy real estate agent for help.
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