Foreclosure properties can be an excellent investment. However, they can be risky so a foreclosure
purchase needs to be approached carefully. Keep in mind that there are different types of foreclosure
properties:
- Notice-of-default (NOD) and notice of trustee sale (NTS) properties are both in the
pre-foreclosure stage.
- Real-estate-owned (REO) properties have been re-purchased by a bank.
For most consumers, buying a pre-foreclosure property from a private homeowner is the best option.
Here, the seller is looking to get out from under a mortgage without destroying his credit rating. At
the same time, the lender is saved the time and expense of foreclosing on the property. Finally, the
buyer may get a below-market price on a home.
Internet sites such as www.realtytrac.com may
help you locate properties in the pre-foreclosure stage. Once such a property is identified, you need
to check it out thoroughly before making an offer.
