Question:

How to purchase a foreclosure home?

Answer:

So you have heard foreclosures are cheaper to get and need to know how to purchase a foreclosure home.

Well, foreclosures are more difficult to locate and require more paperwork than a regular home purchase transaction. If you are looking for a foreclosure home to live, or for investment purposes, you should know that location is all that matters and you are going for different things.

How to purchase a foreclosure home to live in or sell?

When purchasing a foreclosure home to live in, you are looking for a discount, but not as big as you'd be after if you wanted an investment home. Best way to purchase a foreclosure home for your primary residence is to contact lenders for REO (real estate owned) foreclosure homes. You will be able to get a discount of up to 5% of market value, since the lender paid taxes and probably paid for repairs.

If you are looking to purchase a foreclosure fixer-upper, or simply want a nice cheap home for residence or resell purposes, be ready to work hard for your discount. Locating foreclosure homes can be done through newspaper and magazine listings, and through the internet. After foreclosure homes are found, there is a lot of work involved to check liens, taxes and properties' condition. However, attending a public foreclosure for the right property may get you a nice 40% discount.

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