The Foreclosure Saga

While foreclosure numbers continue to rise, just because a home is in foreclosure does not mean that it is a bargain.

Foreclosures are not what they used to be over ten years ago, where banks allowed investors or a typical home buyer to purchase a bank seized property for the mortgage balance. Instead, banks got smart and began to ask for the market value of a home regardless if it is a bank owned property or not.

And just becasue a home is in a foreclosure status does not mean that it is a bargain. Some of these homes are in deplorable contitions and unless you are a seasoned, savvy investor who has funds to make offers on fixer-uppers, it would be a good idea to get educated as to the value and market conditions and how to negotiate a real estate foreclosure deal.

Foreclosure's are a great investment if you are an investor or are a home buyer if you know the market. If you are an investor, make sure that you get the price that the home is valued at least 30-50% below market value, especially lower if it needs a lot of repairs. If you are a buyer looking to buy a home at a bargain and don't mind living in a house that needs smaller repairs, then that is your house to make it your home.

© 2008 Diana Perez