The number of foreclosed homes is rising at a steady rate. Foreclosure may seem unfair, but it’s a legal way that a lender can recover the amount owed on a defaulted loan.
If you’re looking to buy a house, a foreclosed home should be your first option for a number of reasons:
- You Get Standard Loan Configurations
In case you don’t have enough money to buy the home, there are a variety of credible loan options at your disposal such as a USDA loan, VA loan, or FHA loan. All these loan alternatives have flexible payback plans and you can receive them as long as the house you have in mind is in livable condition.
- Lower Costs
Foreclosed homes are priced by a lender, who doesn’t put much emphasis on the actual worth of the home. This makes foreclosures a cost less than other homes in the neighborhood.
- They’ve Got Renovation Potential
Okay, so maybe you love a specific foreclosure but think it needs some sprucing up. That’s okay, it is possible! Many banks aren’t keen on making renovations and repairs before putting foreclosures up for sale, but they will handle the repair costs for you.
- No Title Hassle
There’s no guarantee that you can get a clean title if you choose to buy a house from a homeowner. The owner may have liens or back taxes that may cause you to rethink buying. Titles of foreclosed homes, on the other hand, are cleared by banks.