Investing in Foreclosures
You don’t need to wait until the auction to purchase a foreclosed home. A property may be bought during the pre and post-foreclosure periods. With pre-foreclosures you work with the owner and sometimes the lender. Discounts may range from 20 to 35 percent, and a low cash down payment is possible, as well as flexible payment structures. Buying at auction can often result in 35 to 45 percent savings.
Post-foreclosures have been taken in by the lender. These properties are known as “real estate owned, or REOS , and always have a clear title, which saves time and money. The lender bank will probably pay the taxes in arrears, repair the property, or offer a discount for repairs.
