Something we are seeing more and more of as we get into 2007 are lots of bank foreclosures. Although forclosures have always been an opportunity to get a good deal on a distressed property, I think you will find in the months to come that forclosed properties are going to be everywhere. Mainly due to the slow down in the real estate market, which trickles down into many other fields, many people are unable to make ends meet and therefore are losing their homes. Some of the mortgages that were taken in the past came with adjustable rates, that once they adjust the buyers can no longer afford the payment. What do you need to know about foreclosed properties? Well, first and foremost, these homes are almost always sold as-is, where is. Very few exceptions. Do your homework prior to putting money down, as many earnest money deposits are non refundable if you do not follow through with the purchase for any reason. Always have title insurance worked into your offer as a requirement, no matter who has to pay for it. That way you can be assured that you are purchasing a home with no leins or encumbrances. Look carefully at homes before making an offer. Remember that if the house needs too much work, lenders may not want to loan money on it. So if you are not a cash buyer, the really distressed properties should probably not be something to consider.
Our company, SunState Realty, deals with REO (real estate owned by banks) on a daily basis, and would be happy to share our latest list of homes and properties.