Ways of Acquiring Foreclosures Homes For Sale
Several options are available to buyers of foreclosures homes for sale. A buyer should decide whether to acquire a property from an auction, negotiate with a bank on an REO purchase or deal directly with the home owner to buy a particular house. In all types of transactions, understanding the pros and cons of each is important to make sure that the buyer gets the best deal that he can possibly get.
Why Go Through Auction Bidding?
Buying a house from an auction offers the advantage of a quick, no-nonsense acquisition. The moment the buyer is declared the winner, he will have no reason to fear that other offers, even better ones, will be entertained. As long as he can close the transaction at the predetermined closing date, he will have no trouble taking over the property.
The negative side of auction is that a lot of cash is needed before a buyer can even join the bidding war at the auction house. Some states require the full maximum bid amount before they even allow a buyer to bid on any of the foreclosures homes for sale, while other areas only require the down payment or ten percent of the full purchase price. In both cases, cash or cashier’s checks are the only accepted modes of payment.
Are REO Deals for You?
Buying a real estate owned house or a bank foreclosure offers the benefit of dealing directly with the bank that owns the property. Transactions are usually straightforward and secure in such a way that REO properties do not carry liens or unpaid obligations left by previous owners.
One of the negatives is the possibility of getting a house that requires a lot of money to repair. That is why REO buyers are advised to conduct a thorough inspection of the properties prior to making an offer. Another negative is that bank transactions can take weeks or even months to complete. This means that buyers of foreclosures homes for sale by banks will not be able to move in immediately and must wait for a certain period of time before they can legally claim the property as their own.