Prospective home buyers looking to get a deal may be in luck with a foreclosed home. Before you jump at a foreclosed with a lower price, though, you need to fully understand what it means to buy foreclosed and how to buy a foreclosure the right way.
As there are many benefits, there are also some drawbacks and risks to be aware of. You’ll also need to decide on the funding option that is best for the purchase. It’s a lot to take in, but when done properly, you can find yourself owning a beautiful home at a healthy discount when you buy a foreclosure.
What is a foreclosed home?
A foreclosed home is a house or condo that the owner has failed to make mortgage payments on, and the lender has decided to move forward with taking possession of the house or condo. The reason homes can be foreclosed on is that a mortgage is a secured loan that uses the home as collateral in case the borrower stops payment. The agreement between the buyer and the lender is that if th… Read More