3 Ways to Buy Foreclosure

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There are three ways to buy foreclosures. There are pro's and con's in each of these methods...

1. You can buy the foreclosure BEFORE the foreclosure auction. This is the best time to buy the foreclosure because you have NO COMPETITION. During this step, the work you need to do is do a shortsale. The disadvantage of a shortsale is that your profit is in direct proportion to what you can negotiate with the bank and shortsales take a LOT OF TIME AND EFFORT to negotiate. Also, in a shortsale...depending on the homeowner, it's hard to tell them a shortsale is not going to help them keep their home.


2. You can buy the foreclosure DURING the foreclosure auction. This is the worst time to buy foreclosures because there is a LOT OF COMPETITION. You have amateurs who thought there are good deals during foreclosure auctions and you have representatives from the banks who will buy back the properties. The other bad part of buying properties at auctions is that you don't have an inspection contingency. In some cases, you cannot even inspect the property and estimate the repairs. Buying properties during auctions is a terrible idea specially if you're a beginner. DON'T DO IT!


3. You can buy the foreclosure AFTER the foreclosure auction. That is when the property was bought back by the bank foreclosing the property. At this stage, the property becomes an REO - which stands for Real Estate Owned. The advantage is that THERE IS VERY LITTE WORK other than making lots of offers and getting one of them to get accepted by the banks. There is some competition [SOLICITATION REMOVED]

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dedicated to your financial success,

Trace Trajano
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