Bank Foreclosures

I’m sure you have heard that bank foreclosures are at an all time high. It seems as though there are tons of bank foreclosures on the market, making it a prime time to invest. Whether you are looking for a home for your family, a house to turn into a rental property, or are looking to find a fixer-upper to sell fast, bank foreclosures are the area in which to look. Just a few years ago, the housing industry was switched-there were not enough houses for those who wanted to purchase them-it was a seller’s market, and they could get what they wanted for the house that they were selling.  In the post-boom market, there tons of sellers, but only a few buyers, making it a buyer’s market. Buyer’s currently have the opportunity to shop for the house they want, for the price they want. Colorado currently leads the nation in bank foreclosures, followed very closely by Nevada and Texas. However, the majority of the US has several bank foreclosures currently on the market. There are a few steps to purchasing the right foreclosure. First, you want to be aware of what you are looking for in a house and what the house is going to be used for. Are you personally going to live in the house, and if so, what are you and your family’s needs? Are you going to use this as a rental property? If so, who are your target renters? Students, families, new graduates, newly married? These people will likely each be looking for something very different. The next logical step is to prepare a budget. Decide how much you are able to pay for the actual house, how much you will spend in repairs, and decide if you can afford the monthly mortgage, or if you are renting, if the rent will pull in enough to cover the mortgage. Your next step is to talk to a lender, and to find out the amount of money that you are qualified to receive. Note of advice-not every lender will tell you the same thing. If you are looking to be qualified for a certain amount, and one lender will not approve you for that amount, try someone else-they might be able to find a way to help you. After you know how much you are qualified to spend, start looking at houses. Websites such as www.CurrentForeclosures.com are great places to look, as they list nationwide bank foreclosures that give you the specifications on each house available. Once you find houses that interest you, drive by, drive through the neighborhood, go inside and look around if possible. All this will give you an idea if it really is a good investment for the amount of money that they are asking for. Finally, make a bid on the house after deciding what you believe it is worth, and keep your fingers crossed!