You don't have to be Donald Trump to realize that foreclosures often represent some of the best deals in real estate. Banks are in the business of loaning money at high interest rates and collecting mortgage payments, not owning property. So whenever banks repossess a house from someone unable to keep up with the monthly bills, they look to sell it again as soon as possible -- usually at a cut-rate price. So if you're looking to save big money on a house purchase, it pays to keep an eye on local foreclosure properties for sale.
Once upon a time, only hardcore real estate developers were interested in foreclosure properties for sale. That's because most of the foreclosed homes were in undesirable urban areas with high crime rates and problems with gang violence. But thanks to the mortgage crisis in recent years, we're seeing more and more foreclosure properties for sale in prime suburban subdivisions. These homes give owners a safe environment in which to raise a family, as well as access to some of the top school districts in the country. It's no wonder, then, that more and more people are shopping for foreclosed homes these days.
How do you go about finding foreclosure properties for sale? Most folks opt not to work with a real estate agent -- at least initially -- when trying to find a good deal. Instead, there are a number of websites that provide free listings of recent foreclosures nationwide. You can browse homes by price, size (square footage), or location, and grab the necessary contact details if you want to tender an offer.
Another popular route is to attend local or online property auctions. At these auctions, you can bid on foreclosure properties for sale and hope to score a bargain that way. One of the advantages of auctions, of course, is that you name your own price. If you bid is accepted, then you stand to come away with the best possible deal. However, an obvious drawback is that you're not guaranteed to be the highest bidder, so you always risk leaving empty-handed.
And finally, the government always maintains a list of foreclosure properties for sale on the Housing and Urban Development (HUD) website. While most of the listings are for modest single-family homes, you'll occasionally come across exotic mansions that are being offered for pennies on the dollar. These places have likely been seized in drug raids or from white-collar criminals and are now being sold in order to pay off fines, which means bargain prices for buyers.
The mortgage crisis hasn't been very much fun for anyone, but it does mean that there are more affordable homes out there today. If you're in the market for a new place, it would be smart to check out foreclosure properties for sale instead of hunting for a house through regular channels.