Buying Foreclosed Homes

Why Buying Foreclosed Homes Is Good For Everybody

Now, that headline got your attention. How in the world can buying foreclosed homes be good for everybody? After all, when a homeowner is foreclosed on by a bank, the first reaction is “bad news,” right? The ex-owner loses and the bank wins, right? This couldn’t be further from the truth. While it is true that the family now needs to find a new place to live, that isn’t necessarily bad. Instead of paying $1,000 to $2,000 monthly on a mortgage, they can conceivably now rent for perhaps half that much. And still live in a nice home - just more within their means. Then the bank really is the one in a tough position. They are stuck with a property that they don’t really want. So the bank will attempt to turn around and sell the distressed property as soon as possible. Banks lend money - they don’t like to own real estate. Enter the smart investor who is ready to buy and then rent out the home, perhaps even to the family that previously owned it. The family is happy to have a roof over t

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