Buying a foreclosed home can be beneficial to home buyers in a variety of ways. The main one being – it’s attractively low price. With most sold well below market value, foreclosed homes could be a great option for homebuyers on a budget!
What is a Foreclosed Home?
A foreclosed home is a property that has been repossessed by the bank or government after the homeowner stops making payments and defaults on their loan.
Types of foreclosures:
- Pre-foreclosure
- Short sale
- Sheriff’s sale
- Real estate owned
How to find a foreclosed home?
Potential homebuyers who are looking to purchase a foreclosed home can look to some government-backed websites or simply take a drive throughout different neighborhoods, as they would for any other home. Another option is speaking to a real estate agent who may be more knowledgeable of foreclosures in the buyer’s preferred neighborhood.
What are the benefits of purchasing a foreclosed home?
- Lower than market value price
- Lower down payments
- Lower interest rates
- Elimination of appraisal fees and some closing costs
A foreclosed home is typically set at a lower than market value price. This is a great option for those homebuyers who are looking to purchase but cannot afford many of the homes on the market. Along with this, foreclosed homes tend to have lower down payments and lower interest rates, making them even more affordable. Lastly, when purchasing a foreclosed home, buyers can eliminate appraisal fees and some closing costs, making the home buying process just that much simpler.
To learn more about foreclosures and the process of buying one, contact a VanDyk Loan Originator today!