Foreclosure homes are the solutions to the complicated question of how to buy a quality home at a rate lower than the market price. Before proceeding further we would like to know the basics of a foreclosure home. A home which has been legally occupied by the lender from the borrower after the borrower was not able to pay three consecutive installment payments for a mortgage loan taken by him. Usually two types of foreclosure homes are seen: First one is the homes acquired by banks known as bank foreclosure homes and the other being government foreclosure homes, which are taken by government agencies such as U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Veteran Affairs (VA).
There are many benefits to purchase a foreclosure home from a bank. You can buy a home at a cheap rate as bank wants to get rid of property in quick time. You don’t have to pay property tax as they are free from any liens like unpaid property taxes. As you get the home from a bank there are no legal hassles and you get a clear title. One thing which one might keep in mind is that bank is not responsible for the maintenance of home. So the home must be inspected properly before starting the paper work.
If you find considerable damage on inspection in the foreclosure home you can renegotiate with the bank for the price. You can speed up the whole process by applying for a loan from the same bank. In this way are able to live in it, rent it out or resell it for a higher profit.
It is not easy to find a foreclosure home. To find a foreclosure property you can dig up newspapers, real estate magazines, newsletters, and the internet. There is an option of contacting government agencies such as Fannie Mae, Federal Deposit Insurance Corporation, U.S. Army Corps of Engineers, Small Business Administration, Internal Revenue Service, Freddie Mac, county taxation departments, HUD and VA. One can find foreclosure homes most easily on the real estate websites who emphasize on both bank-owned and government owned foreclosed properties.