Home Foreclosures. The two words we all have been hearing about for the past year and a half. Home foreclosures are the end result when homeowners default on their mortgage for an extended amount of time. Once the bank decides to take action, they file a public default notice. During the pre-foreclosure period the residents receive a grace period determined by state law to pay off the default amount. Obviously if this can not be done then the bank repossesses the home. Another option is for the homeowner to sale the property to an outside party. This pays off the default amount and frees the home owner of a bad credit rating. Once the pre-foreclosure period is over the bank has the option of placing the home up for auction. If the home is not bought at a public auction the lender has the option to take ownership of the home. When lenders choose this option they usually do it to resell the home on the open market. Real Estate Owned (REO) properties are homes that the bank has repossessed.

So what are the benefits of purchasing home foreclosures? Lenders are typically in a hurry to get rid of foreclosed homes and will do whatever it takes to get them sold. Homeowners can typically purchase REO properties for twenty-forty percent below market value during the pre-foreclosure period. Lenders also remove existing liens and back taxes on the properties. Buyers have the option to schedule home inspections immediately. In addition to these perks, the lender also allows negation of rehab costs, interest, closing points, and loan amounts. Accepting a less than normal down payment is also a perk when buying foreclosed homes.

Now that you know the perks of purchasing home foreclosures, how do you find them? In today's technological world, it is very easy! There are many websites available today that provide access to home foreclosures. In addition to the world wide web, local newspapers and word of mouth are also great methods of finding the right home foreclosure for you.

Although the perks of purchasing a home foreclosure may appear to outweigh everything else, you still need to do your homework. State laws are a good place to start preparing for you home foreclosure purchase. In addition to state laws, it is vital that you look the home over in a thorough fashion before purchasing it as most lenders sell the house "as is". During the home purchase, you will make an offer which the lender could possibly counteroffer. There may be more than one person involved handling the selling of the home so the home purchasing process could take longer than usual. Educating yourself on purchasing home foreclosures will pay off in the end and help you find the perfect home foreclosure for you and your family.

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