Whether foreclosure are a good target for investors or cash buyers

[Clement Oigoga Adams]

Hello Bpers, I was wandering whether cash buyers or real estate investors actually buy foreclosure properties because I don't know if that is a market that normally picks there interest? And also whether the investors like foreclosure since the owner literally lost the house to a loan and all that, I don't actually understand the foreclosure part of all this and that is why I am asking.

[Carson Nordmann]

Yeah, foreclosures are one of the more active categories for cash buyers and investors. The appeal is usually equity, the bank wants to recover the loan balance, not maximize sale price, so there's often room. Pre-foreclosure is where a lot of investors focus specifically, because you can reach the owner before the bank takes the house.