By Cedric Loiselle
Becoming a homeowner is the dream of many people, and many are making this dream a reality by buying foreclosed homes. Foreclosed homes are properties that have been surrendered to the bank by owners who could not pay the mortgage and were forced to return the home to the lender in order to settle the debt. Once the bank has reclaimed these homes they tend to sell them quickly because banks don't have any real need for real estate other than the money it returns. These sales, generally done through an auction, can allow aspiring home owners to purchase a home for much less than would be possible otherwise.
If you want to learn about purchasing a foreclosed, the best start is consulting a local real estate agent or lawyer that deals with such properties. These professionals will be able to tell you what properties will come available soon and how you can get in on the auctions. They will also be able to fill you in on the laws that apply to the short sale process and foreclosed properties in your area. Many independent real estate agents make much of their annual income through purchasing foreclosed homes and "flipping" them, or fixing them up and reselling them for much higher prices. Keep this in mind when consulting a real estate agency because they may try to persuade you to purchase a home through them rather than attempting to purchase one through a foreclosure.
Going It On Your Own
Rather than consulting professional help through a real estate agent, you can pursue purchasing a foreclosed home on your own. One way to do this is to acquire a listing of properties that have been foreclosed upon in your area recently. These lists, which are sometimes free and sometimes available for a low cost, allow you to look through all of the properties that have recently been foreclosed upon, as well as the asking price by the new owner. These lists make it possible to see a large number of properties quickly and easily. They can, though, feature inflated prices. If you want the absolute lowest price you can when it comes to buying a foreclosed home, though, you should go direct to the source and try your luck at a foreclosure auction.
If you want to go this way, first you must look through newspapers and online listings of homes that will be foreclosed upon soon and the date of the auction. You must then secure the funding to purchase the home. You can't go to an auction, "win" a home and then figure out how to pay for it.
Purchasing a foreclosed home is generally an "as is" situation. Before you purchase a foreclosed home, it is a good idea to inspect the home so you can be prepared for what you are buying. Because these homes have been foreclosed upon due to nonpayment, they are sometimes in neglected condition. You don't want to waste all of the money you save by buying a foreclosed home having to fix it up. Once you have learned how to buy foreclosed homes you can move toward accomplishing your goal of owning your own home, at an amazing price.