Real estate foreclosures, also known as REO foreclosures, are bank-foreclosed properties that were not sold at a short sale or auction. These properties are in the hands of the banks for a future auction or sale. Banks advertise surplus properties themselves or make deals with Real Estate companies that specialize in REO foreclosures. These assets are a burden on the bank while they are vacant, providing an excellent opportunity for prospective home buyers and new investors looking to enter the real estate market.
There are many ways to find these real estate foreclosures. Foreclosure listings are provided by banks, real estate companies, government listings and directories. Online databases provide information on all types of REO foreclosure properties available across the country. They can also help you narrow your search to a particular neighborhood or another state. Quality online databases will provide you with detailed property information to ensure that you can make an informed decision on a quality investment for your family’s future.
Just because a home is listed as an REO foreclosure doesn’t mean you have to have a large down payment or risk being outbid on your dream home. Depending on the type of property and your reasons for purchasing, there are different types of financing available. Investors looking for commercial property may seek hard money loans to obtain the property and improve it for possible resale. Low-income families looking to buy a home they want to live in can look into government-owned foreclosures such as HUD and Fannie Mae homes. These homes qualify for special mortgages and financing if repairs are needed to make the home livable.
Real estate foreclosures provide buyers with the opportunity to purchase homes at a lower cost than the mainstream real estate market. Whether you’re searching for your dream home or diving into the real estate market, REO foreclosure homes are a great way to get started on the path to ownership. Government and bank owned foreclosures are often available for certain deductions and special subsidies not available to the standard homebuyer. With careful research and a little persistence, you can find the perfect home to raise your family.