The Story Behind Repossession Houses (and Why They Are Good Buys)
Foreclosure houses are flooding the market, creating a niche of their in the real estate industry. They are cheap buys and many people have recognized their investment potentials.
Why Foreclosures Houses are Cheap Buys:
Repossession houses are on the market for sale at very low prices. Basically, these houses were foreclosed by banks and mortgage lenders because the homeowners defaulted on their mortgage. To recover the unpaid balance of the loan, banks and mortgage lenders do not have a choice but to foreclose the properties.
On the part of banks, many want to sell the foreclosed properties immediately to recover the unpaid loan balance. Banks also want to cut their losses because they know that the longer a foreclosed property remains unsold on the market, the bigger their losses will be. Also, having a long list of foreclosure homes on their inventory would not look good on their business image.
If you are planning to buy a distressed property directly from a troubled homeowner, you can also expect a bargain. Many foreclosure property owners prefer to avoid the trouble and stress of getting into the foreclosure process. This is the primary reason why they are willing to sell their homes at real bargain prices. Pre-foreclosure sale is also one way to save their credit rating which will be completely ruined if they allowed banks or mortgage lenders to foreclose on their houses.
The Many Opportunities of Foreclosure Houses:
Foreclosure houses represent many possibilities for smart investors. They buy these properties at almost 50 percent below their market value, do some minor repair and re-sell them at a profit. Some rent these properties while waiting for the real estate market to bounce from its current slump.
For other people, foreclosed homes are the only option they have to own properties. The cheap prices allow them to finally be able to afford to buy homes they can call their own. And as long as you do some research before making a buying decision, you can be sure that repossessed houses are the best buys to make.