Total Benefits to Buying a Foreclosure

With the number of foreclosures looming around each and every neighborhood, buying one can provide numerous benefits to the home buyer.

Many investors find it advantageous to purchase a home via a lease to own agreement. The reason is because they don’t have to put much money down and it helps to leverage the number of properties they can purchase. But there are risks as there have been reports that payments made to the original homeowner never gets paid and the home is on its way to foreclosure. So beware that you have arranged for controlled payments in a lease to own purchase.

The safest way to purchase a property is via a short sale. At the time of purchase, all liens would clear title and financing is all in your control. Also, it allows for the purchase of a property at a discounted rate.

1) Easy to Find a Seller – In today’s market it is easy to find a homeowner in distress and desperate to sell. Many will settle for almost anything just to get out of their situation.

2) Saving the Homeowner’s Credit – A homeowner wants to avoid a foreclosure to save their credit history. It’s better for them to have a few late mortgages on their credit report rather than a foreclosure.

3) See Before you Buy – If you buy a foreclosure before it goes to auction, you are able to inspect the home before making a decision. You will know exactly what needs to be repaired and the condition it was left.

4) Avoid Paying Liens – Buying a foreclosure via a short sale will clear any liens that are on the property, such as tax liens, property taxes, and Homeowner Association fees.

5) Getting the Best Price – Buying a foreclosure via a short sale will also allow you to get the best price, under current market value as you can get a discounted price on the distressed property.

6) Save on Closing Costs – Also purchasing a home via a short sale, it is sometime possible to negotiate having the lender pay a portion of your closing costs.

7) Not Having to Pay All Cash – One of the main reasons a home is not purchased at auction is due to the fact it has to be an all cash deal.

Arranging the Best Financing Terms –Not only can you have time to arrange for financing with a lender if you purchase a home before it goes to auction, but you can sometimes negotiate financing terms with the homeowner.

9) Deals on Personal Property – It is possible to negotiate to purchase the homeowner’s personal property at a fair discount. For example: washing machine, refrigerator, furniture, light fixtures, televisions, and automobiles.

10) Achieving Positive Cash Flow – If you are able to purchase a home under market value with good financing terms, you could achieve a positive cash flow in a shorter amount of time if not immediately.

Article Resource: http://whbsolutions.com/blog/