The old saying goes, “one man's disaster is another man's fortune". Few folks really like to have personal gain in another one's enduring moments, but it's almost silly not to in the housing market being the way it is. What do I mean? The high number of home foreclosure listings! Yes, many homeowners have come to the unpleasant surprise of their dream house becoming a Grade A ghoul for them. Increasing mortgage rates, property tax increases, and job losses have contributed to an increase in foreclosures. Your aptitude in the purchase of foreclosed homes can really help someone. Read on to move into the reasons why you may want to take part in this action.
There is no other way to say it, it's just a fact of life. . . some folks can't evade being foreclosed on. However, selling a home prior to foreclosure is ideal for all those involved:
1) The home seller wins because it prevents the seller from messing up his/her FICO score. Foreclosures are as destructive as bankruptcy to one's credit, annoying your credit score for years. By getting out from under preponderant mortgage payment gives the homeowner the time needed to recalculate their finances and purchase another house sooner rather than later.
2) The bank or mortgage company is thrilled with the selling of a home before they have to render it foreclosed. This allows the bank or mortgage company to refrain from expensive litigation and maintenance costs later. Not to mention the cost of selling off the property that they do not want to own.
3) Now YOU as the buyer can win by aquiring a property for less than market value. You have a couple of options at this point, you can make any needed fixes and/or improvements. Then you can keep the home for you and your family, or you can turn around and sell the house for a hefty profit.
It's true, in certain circumstance, a sale before a house is foreclosed can be a win for all three parties. This tends to happen time to time, but sometimes the home seller suffers a bigger loss. In some cases even the bank may be the loser, this happens when they end up settling for your low ball offer. In either case, be cautious that there is value in the foreclosure for you as the buyer.
There are many clever real estate academics who predict that foreclosures will become more prevalent everywhere in the coming months. One of the best ways to find these is via HUD home listings. It's quite possible for you to swing a deal that could end up earning or saving you tens of thousands of dollars on a piece of repossessed property. So keep an eye on your local HUD foreclosures for sale listings that were made available by “in a pickle" sellers. Just think, there's a home for you closer than you think, for far cheaper than you thought.
Cantell Christian is a researcher in various areas of real estate, you can get more info about HUD home listings where you can find homes in your area that can benefit you.