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Buyers and would-be investors often look to foreclosure sales to find real estate bargains. But newcomers to this market could find some unpleasant surprises if they go in blind. To get the best deal when buying foreclosures, all homes should be thoroughly inspected by a professional home inspector before sealing the deal. Why inspect if you can't negotiate? Foreclosure homes are usually “as-is” sales. This means that buyers cannot negotiate for the cost of needed repairs, ...
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A foreclosure auction is a unique forum in which to buy a property. Here are some tips for getting the best possible deal at a foreclosure auction. Tip #1: Do your homework Before attending the auction, it's crucial to do your homework. When you bid on a foreclosure property at a public auction, you cannot retract your bid. Therefore, do as much research as you can on the properties being offered at the auction. Ideally, focus only on one property, or just a small number of ...
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Homes that are acquired by a bank from foreclosure are called REOs: real estate owned. These are properties that have gone back to the mortgage company in the aftermath of an unsuccessful foreclosure auction. You might ask, "Why would an auction on an already deemed to be foreclosed home be unsuccessful?" Well, they almost always are. And the reason is that the minimum bid on such properties would have to cover the costs of all that is currently owed to the bank/lender, and this includes: the ...
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