11 Reasons to Buy Foreclosed Homes
Some people think foreclosed homes are real fixer uppers, in need of a lot of TLC, but the truth is, plenty of foreclosed homes are in great condition and ready to be lived in.
If you’re looking to buy a home, here are 11 great reasons to consider looking at foreclosed homes.
Better Deals
Real estate is always about getting the best deal. With foreclosed homes, banks want to get the property off their hands as quickly as possible. Therefore, they lower the price to attract buyers.
When the bank owns the property, there’s a good chance the debts, liens or problems with the title will be cleared up.
More Equity
When you buy a home at a low rate and sell it at a high one, you stand to accumulate a lot of equity, which can help you buy a bigger, better home later. Foreclosed homes are perfect for this type of investment, assuming the repairs aren’t too overbearing and the neighborhood has developed well.
The 203K Loan
Most people assume foreclosed homes have something very wrong either on the outside or inside. That’s okay. The home may qualify for a rehabilitation loan, which will help you pay for the repairs. This can be a huge weight off your shoulders.
Quick and Competent
The bank wants to get rid of the property. Therefore, they’re happy to accommodate you and your schedule. Need an inspection? Schedule it now. The property is vacant so you don’t have to work around someone else.
Potential for Move-In Ready
With foreclosed homes, there is the chance that the home will be move-in ready. This is a great opportunity to snag a great home at a great price. Although some houses might have a little garbage to be cleaned up, your effort might still be minimal.
Neighborhood Potential
You’d be surprised where you might find foreclosed homes. They can be in any neighborhood. Be sure to check your dream neighborhood frequently to see if any homes have been brought to the market.
Better Mortgage Payments
Since foreclosures are often very cheap, your monthly mortgage payment will likely be lower as a result. You can save the extra money or reinvest in the house and upgrade the kitchen or finish the basement.
Possibility for Flexibility
Foreclosed homes sometimes take a while to be ready for closing. To some people, that’s a major negative, but if think about it, this is actually good for you. You will have time to complete your loan application and get ready for the move.
Potential for Investment
If you’re thinking about starting an investment project, a foreclosed home is a great start. You can easily turn it into a rental property. You can also flip it and resell it for a profit.
Bigger and Better Home
When you’re on a tight budget, getting a big home might not be possible. If you go after foreclosed homes, however, there is a chance that you will be able to score a bigger home than your budget would normally allow.
Better Knowledge of Foreclosure Market
Having a strong knowledge of the foreclosure market can help you in the future. You may decide to buy your next home from the foreclosure market, and you’ll be better prepared to handle the whole experience.