Is this the way to go to get a good deal on a home?
Everyone today is looking to buy a foreclosure thinking that this is where they are going to get the best deal. Not always. Remember the home owner that is at this point has tried everything to sell their home. In todays time many of these home were refinanced at 100% of it's value when prices were up. So where does that leave the bank. The owners owe more then the home is worth. How much of a lose is a bank willing to take. Some times they are not able to do that. So this home is not a good deal. Someone that has not been able to make their payments really have not had the money to keep up this home either. Sometimes the banks will go in and fix them up which in turn they put them at market value. Foreclosure are sold in as is condition. They are not willing to make repairs.
Short Sale
What is a short sale- This is when the bank is willing to take less then what is owed with late payments and added fees by the bank. This is a processes to do and the bank is looking for a reason why this came about, loss job or medical. Banks don't like to do it but they would rather go with a short sale then going through the process of foreclosing on a home. This also is better on your credit.
You need to look at everything that is available. Home are being sold under assessed value. These are home owners that have equity in their homes and they can give you a good deal.
Work with a Realtor that can show you the market and what is out there. Compare what is available and you will be able to make the right decision on your home. Figure in repairs and updates. Look at the whole picture. Don't forget how important a home inspections is.
Here is a good link to the IRS on Short sales and Foreclosure
