Buying Foreclosures – Good or Bad Idea?
With all the foreclosure activity around the country right now, I know anyone with a lot of cash has to be thinking, "is now the time to start buying foreclosures?"
I know if I had that kind of cash I would at least be checking out my local area to see what is out there that is in foreclosure or getting a notice of default.
When you buy a home in foreclosure, you can get a steal of a deal, but it’s risky. I know when I short sold my house that was in foreclosure, the buyer got a really good deal on the home that needed some work but not much.
Finding Foreclosures
Homes in default go through a number of stages before they go to a trustee sale or public auction. The homeowner usually gets a notice of default, at which point you as someone looking to buy homes now can see this data. The next stage is known as "pre-foreclosure". The best chance you have a getting a good deal is getting to the homeowner as early as possible in the process.
To search for foreclosures, and pre-foreclosures, I would use a service like RealtyTrac. They have the most complete database of these types of properties. They also offer a nice free trial offer.
