Foreclosures - Definition

In real estate, a foreclosure is when the bank or mortgage lender repossesses the house because of lack of payment. Because real estate costs have been skyrocketing, the foreclosure market is at an all time high. Today’s buyer can get a better idea of the investment market by investigating the foreclosure market. Foreclosures happen for several reasons. When interest rates rise, many homeowners with adjustable rate mortgages (ARM) are overextended, and are unable to make the payments on their house. Sub prime lending has become another main reason for foreclosure over the past year.

However, no matter the reason for foreclosure, it still stands that there are several foreclosures on the market today, making the present a great time to invest in real estate. Foreclosures have risen 50% already this year. One of the great things about foreclosures is the easiness of finding the properties. Websites like www.currentforeclosures.com list the properties that are available along with all their specifications (the square footage, the number of bedrooms, location, etc.). Researching foreclosures is extremely easy, and makes the investing process very straightforward.