First Time Purchasers of Forclosed Real Estate Given Many Options

by

Chris Robertson

Foreclosed real estate has sharply increased in the United States. More than 1 million homes were repossessed in 2008. Recent trends indicate the availability of real estate foreclosures will continue to at least the end of 2009 or 2010. Availability of homes repossessed varies according to different markets, around the United States. A majority of foreclosures took place in the states of Florida, California, and Arizona, however all areas of the country are affected to some degree. This news is obviously negative for the millions of buyers losing homes – however beneficial news for qualified buyers seeking investment property. Investors with sound credit and the financial ability, to purchase real estate, can easily purchase foreclosures as investment property. Investors purchasing previously foreclosed residential real estate, or commercial real estate, use a variety of methods to purchase such properties, using the assistance of a professional to assist with the process.

First time investors, without experience, and looking at purchasing properties in foreclosure, can seek the assistance of any number of real estate agents or real estate brokers. Many realtors have access to large databases of information, giving potential investors a larger picture of what is available in and around the area. In addition, agents normally have access to information from local banks with different listings. Using an agent will allow purchasers to tap into the agents training and knowledge, so the purchase and subsequent financial transaction take place correctly, including obtaining real estate loans. Brokers have the same function however work with sellers and buyers on real estate transactions. Both types of professionals can assist investors, on important legalities like verifying no liens are placed on the property.

Real estate developers, referred to as real estate investors, are also beneficially used by first time first time purchasers of foreclosed property. Such professionals have the ability to assess any existing damage on the home, and examine the total amount needed to finance the purchase of the foreclosed property. Professionals of this type, verify that investors receive the best possible property, for the amount purchased, and have a good knowledge of the cost of renovations. Purchasing a foreclosed property is not the same as purchasing a stereotypical piece of investment property. Many times the previous owners have demolished the interior. Investors without any mechanical ability are best served by a developer who can advise potential buyers of the cost of renovation. This service is beneficial, because it gives prospective buyers a larger picture of the total cost of purchasing a repossessed property.

For financially savvy first time foreclosure investors, with a good knowledge of real estate trends, it is possible to privately purchased properties taken back by the lender. Using a broker or real agent is advantageous however purchasing a property without assistance is obviously more financially advantageous. Banks are ready to unload foreclosed properties at low prices. In a tight economy, banks need the revenue from the sold property. Depending on the loan on the property in foreclosure, investors can purchase the property according to the stipulations of the original buyer’s lender. For example, government loans require prospective buyers to submit written information with a bid, and the highest bidder receives the foreclosed property. Private lending institutions obviously have in house rules, and prospective buyers, of the foreclosed property need to check the lenders policy on purchasing real estate in foreclosure.

Chris Robertson

is an author of

Majon International

, one of the worlds MOST popular

internet marketing

companies.For tips/information, click here:

Real EstateVisit Majon’s Real Estate directory.

Article Source:

ArticleRich.com