| If you are looking for an affordable home, buying | | | | legal process of claiming the house, so you won't |
| foreclosure homes presents a great opportunity. | | | | have to. With the huge number of repossessed |
| These homes are often for sale at huge discounts. | | | | homes that have been returned to the original lender |
| But in this situation it is definitely a buyer beware | | | | through the foreclosure process, there is a golden |
| situation as moving into a foreclosed home may | | | | opportunity to make a hassle free great deal. |
| present some unforeseen difficulties. That's why | | | | Experts are in agreement that if you are thinking of |
| some buyers are opting to only look at buying REO | | | | buying a foreclosure property you are likely to face |
| properties. These properties are referred to as REO | | | | fewer problems buying an REO property than a true |
| but are simply real estate owned property. | | | | foreclosure. That's because at this stage in the |
| Buying and then taking possession of a foreclosed | | | | foreclosure process, occupants will likely be out of |
| home can be challenging for a few reasons. Even if a | | | | the home. Large financial institutions will have an |
| home under foreclosure is being sold at auction, | | | | easier time legally removing occupants through |
| winning the bid is not the end of the story. Some | | | | eviction than you or I would. You will be able to take |
| states have redemption laws which give delinquent | | | | possession without fear of any legal proceedings |
| borrowers extra time to restore their mortgage to | | | | from the former owners. |
| good standing. If the borrower is able to do this, | | | | If you have decided to look for an REO home your |
| your winning bid means nothing because the | | | | best bet is to work directly with the financial |
| borrower retains possession. | | | | institution who owns the property. Don't even look at |
| There is another factor that may affect your ability | | | | properties listed in the traditional way through an |
| to move into a house you buy as a result of a | | | | agent. These will cost a lot more because of the |
| foreclosure. People who have lost their home to | | | | percentage that has to be paid out in commission. |
| foreclosure are not always willing to leave their | | | | The first thing to do is to call or pay a visit to local |
| homes. You will almost certainly have to try to evict | | | | banking and mortgage institutions. They should be |
| them form the house. Some will move out when | | | | more than willing to share their information because |
| they receive this notice but others have been known | | | | they will want to sell off REO properties as quickly as |
| to refuse to move. If things get sticky and you need | | | | possible. It's also a good idea to check websites, |
| to hire a lawyer, your costs will escalate. | | | | especially for banks that have more than one branch. |
| Finally, be sure that there are no liens on the | | | | National banks may have even more listings on their |
| property and that taxes are up to date before you | | | | main website. |
| purchase. This is crucial because in some states, | | | | There is no doubt that there is money to be saved |
| buyers may be on the hook for these things. | | | | when buying foreclosure homes. But, whether you |
| Because of the risk associated with buying a | | | | buy a foreclosed home, or are buying REO |
| foreclosed property, it's much safer to purchase real | | | | properties, or even a home sold though a real estate |
| estate owned property. REOs are owned by the | | | | agent, always consult with a lawyer who specializes in |
| original lender. They have already gone through the | | | | real estate to avoid problems. |