Buying Foreclosures

There actually are positive aspects in foreclosure.

The increase in the number of people availing loan mortgages encouraged a lot of individuals and companies to venture in foreclosure investments. These kinds of investments involve the purchasing of one or more distressed assets (usually houses). Foreclosed properties are considered as worthwhile investments because, more often than not, the lender or the bank is not motivated to sell the property for more than what is pledged for it.

Aside from foreclosure investments, future house owners also opt to buy foreclosed houses. Buying a home that has been taken over by a bank or lender seeking to recover money will give you a big discount and will help you save enough money.

If you consider yourself a foreclosed asset buyer in the future, here are three important things you must consider:

  • 1) If it is possible, consider only houses owned by people who have, at least, lived there for two years. Remember the the longer a person has lived in a home, the more equity will be built in.
  • 2) Avoid picking houses with "no money down." This means that, for example, even if that certain person has lived in the house for six years, the equity will not be a high as you may expect it is. The "no money down" factor cuts into the equity that has been built up.
  • 3) For a trustworthy list of foreclosed assets in San Diego, we recommend that you contact the local office directly.
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