For better or for worse, there is more foreclosed property available these days. According to RealtyTrac, foreclosures went up an astounding 42 percent last year. Foreclosed properties generally sell for a good price – so purchased wisely, buying foreclosed property can be a good investment.
But before you buy you want to research the property, the neighborhood and know the process. ABC News recently ran an article that discussed some of the terms you ought to know:
Pre-foreclosure sale: That’s where you buy a home from the owner before the owner is foreclosed upon. It’s a win-win situation, where the buyer generally saves money and gets to tour the home.
Auction: With an auction, you buy the property, as is. The market sets the price and you don’t get to see it before purchase.
Real estate-owned: The bank owns it and the buyer generally does not get a prices that is as good as with previous methods of home buying.
For more information, visit ABC News.