2006-10-13 06:24:13 · 6 answers · asked by . . 1 in Business & Finance ➔ Investing
A foreclosed home is one that has been repossessed by the lending institution for default in payments. Such a home may be a good investment because they frequently are sold at below market value.
2006-10-13 06:32:15 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A foreclosure home is a home that someone else defaulted on, meaning they couldn't make their payments on for at least 3 months so they were forced to leave the property. The bank/lender in essence repossesses it and puts it on the market usually for what is owed on it, sometimes less, but they won't fix or repair anything before they do.
Either way you can usually buy a foreclosed home for way under market value because the bank just wants to get it off their books. Keep in mind however, that a lot of people that lose their home to foreclosure will often "trash" the place- sometimes removing furnaces, pouring concrete down the drains, ripping out cabinets or shelving, yank out wiring, etc. If you're willing to put the money into it to get it back to good condition you can turn around and sell it making a decent profit.
But do have an full home inspection first so you at least know how much work will have to be done and if it will even make you a profit.
2006-10-13 13:38:30 · answer #2 · answered by julanaa 2 · 0⤊ 0⤋
Buying any home is an investment. Hopefully it will go up in value over the years. Foreclosure is the process of a bank claiming their property when you fall behind in the monthly payments. You can only make $$$ when you can purchase below market value(strict foreclosures are a wee bit different) The bank will not sale under market value,(even if it has to hire a rep to purchase the property from itself) any loss will be transferred to the so called "home-owner" ! Between the interest rates and lawyer fees& the desperation of the seller there is still sometimes tens of thousands to be made!!
2006-10-13 13:41:37 · answer #3 · answered by seeker2007 1 · 0⤊ 0⤋
1.Foreclosure-A home that the bank has taken back. 2.Investment-You can buy it for less and rent out or sell later. Which is what is happening today with the economy being what it is.
2006-10-13 13:33:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋
A foreclosure home is one that the lending institution has repossessed. Usually, they just want what is owed on the property. You can offer less than the house is worth and see if they go for it. If they do, you can usually put the house on the market for its assessed value and wait for it to sell for a profit.
2006-10-13 13:33:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
A forclosure is reposessed by the bank because the owners couldn't make payments on the house. they're usually auctioned off to the highest bidder, and they're really cheap. Although, they're usually trashed by the deadbeats that lived there.
2006-10-13 13:34:13 · answer #6 · answered by scriptorcarmina 3 · 0⤊ 0⤋