Does it make sense to buy foreclosures?
A given number of homes are foreclosed each year. Most homes are not actually sold at auction as the owner and lender work out a deal, the house is sold by the owner prior to the foreclosure action, or everything is on hold while the owner declares bankruptcy.
Foreclosures are typically sold in “as-is” condition and without warranty. In some cases, but not all, an owner has a right to “equity redemption” and can actually get back the property under certain (rare) conditions.
In other words, foreclosures are like most business transactions — it takes cash, brains, and labor to make deals work and there is no easy or immediate path to success. Also like a business transaction, many foreclosures are available with a significant foreclosure discount when compared with like properties.
As a place to start, go to RealtyTrac.com. This is the nation’s largest source of foreclosure information and properties.
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