are properties that
were repossessed by the lending
that can be acquired at wholesale. There are three types of
foreclosure purchases. Any of
the following methods can help you obtain a bargain.
1. Buying from an owner
prior to a foreclosures sale (pre-foreclosure).
Deal with an owner direct, since the foreclosures owner is in
default you can offer a small amount of cash to take title to
the property which would save their credit had the property gone
into foreclosure. This process can allow you to acquire
property at 60-70% of market value.
2. Buying at a
Foreclosure sale is done through
an auction process where the highest bidder wins title to the
property. You are allowed access to the foreclosures property to
inspect it prior to the auction. the property is delivered free
and clear of any liens.
3. Buying from a lender
after a foreclosure sale (Real Estate Owned, or REO, by the
This procedure is done by dealing
with the banks REO department which provides you a list of
properties that the bank now owns and is willing to sell at a
mutually agreed price.