What To Look For In A Foreclosure Listing
If you are looking to take advantage of the recent down turn in the real estate market foreclosure listings are great places to start. There are many free foreclosure listings that you can look through to find some with potential, however before you do so you probably are going to want to know what to look for.
A Simple Foreclosure Listing Guide
The first thing you need to understand before looking into a foreclosure listing is how the process works and what is involved in the process. Most people that begin looking at a foreclosure listing have an idealist view of who the previous owner was. Most imaging that it was someone who fell on hard times and chooses to give up the house. More than likely the person who was foreclosed on was forced to do so by the bank. This is namely because they simply stopped making payments on the home. This can happen for a number of reasons such as being laid off or fired, the inability to continue working due to medical reasons, excessive debt and mounting bill obligation, squabbles with a co-owner namely due to divorce, or possibly even a job transfer to another state. In all these cases you can see the reason for the foreclosure listing is probably a negative one.
Now this does not mean that all homes will be destroyed in the process of the foreclosure listing. You will need to check your state office to see how they handle the process. In most states what you pay for the house will also contribute to how much debt gets paid off from the sale. Again this can lead to outstanding prices on quality properties, but you do have to be careful.
The key when searching for a quality foreclosure listing to invest in is to find one in a nice neighborhood. Just about anything else on a house you can fix, but if it is in a bad location there is nothing you can do. Good schools and low crime are two things to look for in the area before you invest. I would make absolutely sure of the area before doing anything and in fact I usually pick a very small geographic location to keep an eye on and I only look at houses in that area.
The next step is to go out and look at your foreclosure listing. There is absolutely no substitution for going on site to examine a property. There is nothing you can do to replicate this step, so make sure you include it and take your time.