Foreclosed Homes: Discussing Tips to Buy One

Foreclosed homes or bank foreclosed homes are the types of properties that are currently owned by a bank or financial institution as the previous owner miscarry with their debt or mortgage payments. These types of foreclosed homes are an attractive buy for any foreclosure or real estate investor. These types of properties are generally sold through auctions.

The bank calls for an auction and the highest bidder goes with the property. Generally foreclosed home auctions takes place after the bank accumulated a number of such homes. The main advantage of buying a foreclosed home or property is its sale value. A foreclosed home or property are sold at a price that is almost 40-50% less than the actual market value of such property. The banks offer such a low price for these properties as it has to be sold in order to curtail future recurring expenses arising from such foreclosed properties.

From such auctions the bank pulls off its money (in most of the cases nearly a fraction or same) it invested and the buyer is happy to get such great pieces of property at such low prices. Let’s discuss some tips that you may take into consideration while bidding at auctions for a foreclosed property.

1. The first thing that you should learn is about the procedures of bidding at auctions. This is required as it will prevent you from ending up buying an overpriced property and while making an informed decision. For this you can consult thousands of websites and articles on foreclosed home bidding tips or auction rules. Just get your doubts clear and bag a great deal.

2. You need to consult an expert before going out for a home auction bid. An expert advice can help you in judging the actual price of the property that you are planning to buy. You can also ask him about the previous point, i.e., ‘how to bid in a foreclosure auction?’

3. You can also take advices from your friends or relatives who have prior experience of involvement in a foreclosure auction.

4. You need to be smart while bidding or negotiating. You should be well aware of all the fact and figures, especially legal before the bidding procedure in order to avoid any kind of future hassles.

5. Before you start bidding, spend some time inspecting the house. Make a total estimate of your expenses and also don’t forget to consider the repair work that need to be done after having it.

6. Make sure that you are totally aware about all the facts and figures related to the house or property. In some cases, banks tend to auction a property or house that requires extreme repair or upgrading. Stay well informed and make your decision.
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Bob John Rock is a freelance real estate investor guide who has written many successful articles and books on real estate investors and investments. He currently lives in Tampa, FL and helps people to buy foreclosure properties, real estate investments and loves surfing at past time.

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Foreclosures for Commercial Real Estate

Buying commercial foreclosures can make any real estate investor a huge amount of money. If you are interested in investing in real estate, commercial foreclosures could be the suitable option that you have been looking for. Despite the fact that commercial foreclosures aren’t always as common as single family homes, you should nevertheless be able to find at least a couple nearby so that you can get started.  When it comes down to the basics of it, if you know when and how to buy commercial foreclosures you can make a lot of money.  Investing in these properties is a trend that has recently been taking off, and anybody can get in on the action with a little bit of knowledge in the area.

A commercial foreclosure is similar to one on a residential property. They occur when the owner decides not to pay their mortgage. This consequently forces the bank into foreclosing on the property, and subsequently putting it up for sale to the public. And, when a bank has a commercial foreclosure in their possession, they might want to sell it as quickly as they possibly can. After all, they are not making any kind of profit by letting it sit around without anybody investing in it.

Do you know what a commercial property really is? These properties are ones that people choose to do business in. So, for instance, you could find commercial foreclosures that consist of large office buildings, or ones that consist of small retail outlets. Any place where business can be conducted is considered a commercial foreclosure.

At this point, you might be thinking about how investors usually make money with commercial foreclosures.  The answer to this question is actually relatively simple.  To make money with commercial foreclosures you will want to get the best price possible when you carry out a purchase; but of course this will be the case for every piece of real estate.  From there onwards, most investors will begin to rent out their properties to businesses which might be looking for space. The income that they get each month in rent will cover their mortgage, and in many cases will make them some extra profit as well.  The real money will begin to come in when an investor has a commercial property paid off. At this time, any rent that the owner gets will mostly consist of profit; this is the stage that you should always attempt to strive for.

Altogether, commercial foreclosures can be great investments. No matter what your situation actually happens to be, if you are an investor, you should give commercial foreclosures some strong consideration. They might not be exactly the same as single family investments, but the profits that are available are most certainly very enticing and attractive.


Ann Sommers is a contributing editor at RealEstatePropertyArticles.com. This article may be reproduced provided that its complete content, links and author byline are kept intact and unchanged. No additional links permitted. Hyperlinks and/or URLs must remain both human clickable and search engine spiderable.