Just as there are different ways to buy a house that an owner has put on the market willingly and not because of financial hardship, there is more than one way to buy a house this is slated for/already in foreclosure.
Public Auction
This option often requires a buyer to pay in cash. Busing a house at auction means there is usually little time for the buyer to research the title or investigate the property’s condition. When you buy a house at a public auction, you may get a really great deal, but there are some risks.
Pre-Foreclosure
This involves working with a financially-strapped owner to buy a property outright. Buyers who do this usually have time to looking into the title and the state of the property. The advantage to the owner is that they can avoid having their credit history being scarred by foreclosure. The buyer can get the property for less than its market value.
Bank-Owned
When you buy a bank-owned home, the banks has usually cleared the title and hopefully kept up with maintaining the property. The buyer may not get the same discount they would get if they bought a home through public auction or in pre-foreclosure.
Three Options for Buying a Foreclosed Property
June 5, 2009 Leave a Comment
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