Bank foreclosure listings are a phenomenal resource for the following reasons:
- Properties seek to be sold quickly and at below-market prices
- You can purchase foreclosures with less risk and less competition
- Foreclosures are typically lien-free
While foreclosures usually sell for fantastic discounts, be sure to investigate the neighborhood and the needed repairs for the property. First of all, it won’t do you much good to purchase a home only to find it’s in a terrible area. Second, it doesn’t make sense to purchase at a low price only to find it needs a new roof and has major foundation issues.
Short sales differ from bank foreclosures in that the seller is looking to sell a property before the bank seizes it and it goes into foreclosure. Short sales, like foreclosures, are bargain-priced with very motivated sellers. You can lock down a short-sale property more quickly if you already have a hard money lender and down payment or proof of funds ready to go.
Where to Look: For bank foreclosure listings, check out Foreclosure.com. You can also check out RealtyTrac and Re/Max. For short sales, you can either do a regional search online or go to Foreclosure.com.