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Pre Foreclosure Home Sale Article
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What To Watch Out For In Pre Foreclosure Houses
from:There are a lot of pre foreclosure houses available on the market, many that have excellent investment potential. However, like with any investment, there are some risks associated with purchasing pre foreclosure houses. By knowing what to look out for and what to avoid, investors can reduce the risk of having what looks like a great investment turn into a liability.
The key concepts to keep in mind when buying pre foreclosure houses and properties include:
• Location – no matter how good of a deal you may get on pre foreclosure houses or properties, if they are in remote areas or in neighborhoods that are traditionally hard to sell, they are not really a bargain. If you can afford to hold on to the property for a longer period of time and have reason to expect the area will transition into a desirable neighborhood due to new expansions, subdivisions, shopping centers or other attractions location is not as critical. In some cases the pre foreclosure properties are located in other high pre foreclosure areas, which means the area will be saturated with investors trying to sell homes they have purchased. This will make resale options less and will also decrease the profit you will make on the property.
• Condition – some pre foreclosure houses will be maintained in excellent condition, but generally expect some type of repairs. Since the homeowners have been financially strapped, they are less likely to have painted, upgraded or added to the value of the property, especially if they knew they were heading for a foreclosure. In some cases the owners may have actually contributed to the poor condition of the house, although this is relatively rare.
• Back taxes – in some cases pre foreclosed houses and properties will also have large amounts of back taxes that need to be cleared up in conjunction with the transfer of the title. This can add thousands of dollars to the cost of the property, so make sure you are aware of any taxes owing or other liens against the property.
• Upgrades – if you are considering pre foreclosure properties that are older homes, they will need to be upgraded before they can be put on the market as rentals or properties for sale. Often rental properties are only upgraded with new paint and carpet, but a house for sale may need the fixtures changed, flooring upgraded, windows and roof replaced and even the kitchen or bathrooms remodeled. If you can do some or all of the work yourself this can save costs, however it will still take time and money.
If you are new to buying pre foreclosed houses, consider taking a weekend course or completing an online program to help you become aware of both the benefits and the risk to this type of investment.
Pre Foreclosure Home Sale Specific links
Pre Foreclosure Home Sale News
Foreclosures, House Sales Up in April - LoanSafe
Foreclosures, House Sales Up in April LoanSafe (Source: Ed Waters Jr. The Frederick News-Post, Md. — Foreclosures were up in Frederick County from March to April, but so were home sales. RealtyTrac, a national distressed property data firm, said there were 73 foreclosures in the county in April. |
Speeding Up Short Sales - New York Times
 New York Times | Speeding Up Short Sales New York Times Distressed homeowners often prefer them to a foreclosure, he noted. Expedited sales as a result of the new directive will benefit the entire housing market, said Michael McHugh, the president and chief executive of Continental Home Loans and the ... Mortgage rates hit 4th straight record low Freddie Mac: Housing market showing recovery |
Foreclosures: Better but still not great - Minnesota Public Radio
Foreclosures: Better but still not great Minnesota Public Radio Minnesota is starting to recover from the mortgage crisis -- foreclosures are down, as are the number of homes getting pre-foreclosure notices and the number of sheriffs sales, 2011 data released this afternoon by the Minnesota Home Ownership Center ... |
Seller's market returns as homes for sale drop in some areas - DesMoinesRegister.com
Seller's market returns as homes for sale drop in some areas DesMoinesRegister.com The dwindling inventories — driven by a mix of reluctant sellers, fewer foreclosure resales and rising demand — are spreading as the housing market gains strength. The number of homes for sale in April hit a 6.6-month supply, down from 9.1 months a ... |
J Thomas Homes Seeing Positive Future for Sales of New Homes in Utah - San Francisco Chronicle (press release)
J Thomas Homes Seeing Positive Future for Sales of New Homes in Utah San Francisco Chronicle (press release) Salt Lake City, UT (PRWEB) May 24, 2012 Many new home builders in Utah are pleased to see things improving. With Utah foreclosure activity beginning to decline, interest rates at record lows, and supply of existing homes decreasing, ... |