Bank Foreclosure Homes: The Alternative to Renting
- Date: 2007-03-27 - Word Count: 436
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There exists an old argument between buying and renting, many people say that buying a home may mean more trouble especially if you are planning to move in 3 to 5 years. With the large amount of money paid for the mortgage, these people were better off renting. On the other hand, renters do not enjoy the leverage of having a home. For just 5 to 20% deposit, these people will receive returns on their down payment money based on the appreciation of the total value of their homes.
If you think about it, it all boils down to the amount of money you shelled out and how much of it can you recover as equity. These people do not understand that they can actually enjoy the best of buying and renting with bank foreclosure homes.
Bank foreclosure homes are properties seized by the banks from the owners for failure to cure mortgage default. In general, bank foreclosure homes include pre-foreclosure, foreclosures at auctions and real estate owned properties. Any of these bank foreclosure homes are sold at below average market prices, sometimes with a discount as much as 50%. This means you get to enjoy the benefits of owning a home without the huge monthly mortgage payments.
As investments, bank foreclosure homes are also worthwhile. You can use them as rental properties and the rent can be used to pay for the mortgage dues. For a fast return of capital, you can buy bank foreclosure homes that are sold very cheaply because of their physical condition. Once you fix them up and made them habitable, you can sell them for a nice profit. These are just a couple of potential and possibilities bank foreclosure homes can provide you. If and when you suddenly decide to move, you can still sell these bank foreclosure homes at below average market prices.
To look for the best bank foreclosure homes, foreclosure listings are still the best tools anyone can have. Most banks do not have the resources to sell these bank foreclosure homes. In order to save time and money, banks enter into listings contract with reputable real estate brokers to hopefully attract more potential buyers. A commission, calculated as percentage and based on the list price, is paid to the real estate broker once property is sold.
You should have the foreclosed property thoroughly inspected to check for additional repair costs. But even with repair or renovation costs, purchasing one of these bank foreclosure homes is still cheaper. Another thing you should check is the property's legal documents. Since these are previously owned homes, make sure no secondary liens or claims exist.
If you think about it, it all boils down to the amount of money you shelled out and how much of it can you recover as equity. These people do not understand that they can actually enjoy the best of buying and renting with bank foreclosure homes.
Bank foreclosure homes are properties seized by the banks from the owners for failure to cure mortgage default. In general, bank foreclosure homes include pre-foreclosure, foreclosures at auctions and real estate owned properties. Any of these bank foreclosure homes are sold at below average market prices, sometimes with a discount as much as 50%. This means you get to enjoy the benefits of owning a home without the huge monthly mortgage payments.
As investments, bank foreclosure homes are also worthwhile. You can use them as rental properties and the rent can be used to pay for the mortgage dues. For a fast return of capital, you can buy bank foreclosure homes that are sold very cheaply because of their physical condition. Once you fix them up and made them habitable, you can sell them for a nice profit. These are just a couple of potential and possibilities bank foreclosure homes can provide you. If and when you suddenly decide to move, you can still sell these bank foreclosure homes at below average market prices.
To look for the best bank foreclosure homes, foreclosure listings are still the best tools anyone can have. Most banks do not have the resources to sell these bank foreclosure homes. In order to save time and money, banks enter into listings contract with reputable real estate brokers to hopefully attract more potential buyers. A commission, calculated as percentage and based on the list price, is paid to the real estate broker once property is sold.
You should have the foreclosed property thoroughly inspected to check for additional repair costs. But even with repair or renovation costs, purchasing one of these bank foreclosure homes is still cheaper. Another thing you should check is the property's legal documents. Since these are previously owned homes, make sure no secondary liens or claims exist.
Related Tags: bank foreclosure homes, foreclosure listings, pre-foreclosure, foreclosures auctions
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