Bank foreclosure houses are designed to be profit makers in many ways. One method is a judicial sale, a process in which a lender must petition the court to sell a property that is in default. We track the discount by comparing the sale price of foreclosed homes with that home’s Zestimate home value on the day of the sale. Many links to foreclosure companies and banks are going to offer listings of where foreclosure homes have been located.
Foreclosures often come with baggage — liens against the property, repairs that need to be made, and so forth. If you are new to this business then you will want to check homes in the various areas that the foreclosures are listed to make sure of the value.
Meanwhile while they wait, others are buying foreclosure listings and making great investments. RealtyTrac reported that as of the end of 2015, 3.43% of the housing units in the Atlantic City, NJ housing market had foreclosure filings. Financing is possible for a foreclosed home, but due to the competitive market, it’s best to secure this prior to making an offer.
If you have never purchased a foreclosure home before it’s best to work with a realtor or private real estate investor who specializes in this type of real estate. One of the things needed for the real estate market to begin to stabilize is a return of a more natural balance when comparing bank owned homes to non-foreclosures.
On the other hand, many banks and lenders will refuse to even give you a mortgage on a property being sold “as is” because that means their appraiser can’t inspect it first. Buying a foreclosed home at an auction can be one of the most lucrative and popular ways of acquiring investment properties.