A Foreclosure is the process in which a lender takes possession of a mortgaged property as a result of an owner's failure to make or keep up with their mortgage payments. Due to current economic conditions, the mortgage crisis and challenges facing homeowners, foreclosures are at an all time high. As a result, now may be the ideal time for you to consider upgrading to a larger home, investing in a rental property or purchasing a foreclosure as a first time homebuyer.
A Foreclosed Home is a bank owned property and is also referred to as an REO (real estate owned by a bank). If you plan to purchase an REO and make it your residence, it is essential that you find out if title insurance is available and you can obtain a mortgage on the property. Be prepared to do alot of repair, as Foreclosed homes have usually been unoccupied for an extended period of time, have not been maintained and usually have serious damage to the home and property.