Real estate foreclosures or bank owned properties are one of the top categories in the foreclosures real estate market. If you are searching for an opportunity to break into the real estate industry or smartly invest your money, then you can definitely consider purchasing real estate foreclosures.
The foremost reason when saying that buying real estate foreclosures makes smart investments is the fact that nearly all of the foreclosure properties are sold at prices way below the market value. The discounts may vary from 10 to 50% of the properties original prices. As an individual, real estate foreclosures could be your chance to find your dream house within your budget. As an investor, foreclosures real estate market is undeniably a very lucrative opportunity, for short term as well as for long term investments.
The first step in investing in real estate foreclosures is understanding how this long and complex process works. Patience and vigilance are the key qualities of a smart investor. You need patience because buying real estate foreclosures does not happen over night. In most cases, it takes several months to complete the purchase of a foreclosure property. And if you don’t rush things out, maybe you even get a better price. You need to be vigilant and agile so that to spot the best deals and be prepared to sign an agreement and place a down payment.
A smart investment is always about doing your homework in advance. Therefore, research is a very important part of the real estate foreclosures purchasing process. You can do research by visiting real estate dedicated websites and consulting their foreclosure listings. The perfect start point is E-ForeclosueSearch.com, an industry expert providing quality foreclosure homes listings and comprehensive know-how services that professionals and savvy investors demand. Their huge database contains over 500,000 listings of bank foreclosures, government foreclosures, HUD homes, VA homes, real estate auctions, foreclosure homes, distressed homes and fixer-uppers, and particularly Fannie Mae homes.
Fannie Mae is a federal agency that purchases real estate foreclosures from banks and sells them to consumers at a considerable discount. Again, the best source of information is E-ForeclosueSearch.com, which provides convenient listings of Fannie Mae homes and additional help, in case it is needed, to locate Fannie Mae homes. This particular type of properties on the foreclosures real estate market is alluring due to the exceptional financing requirements. The amount needed for down payment in order to buy a Fannie Mae property is of three to five percent of the purchase price. You should investigate the home thoroughly before you make an offer to buy the home because Fannie Mae properties are sold in “as is” condition. Usually, Fannie Mae agency repairs the home but those repairs are not guaranteed.
As a general rule, when purchasing real estate foreclosures, a $1000 deposit is usually expected, and the potential customer must be able to provide the proof that he has the additional funds considered necessary to pay off the amount owed on the home. The payment required initially depends on two things, the owner of the property and the value of the property. Some banks require a minimum payment of $500, or at least 10% of the amount of your offer. In the case of real estate foreclosures, since the bank owns these properties, you have the opportunity to negotiate unique and flexible sales agreement. So, it’s high time you prove how good a negotiator you can be.