Cheap Homes for Sale Arizona, California, Nevada and Washington.
Looking for cheap homes for sale? If so, you're in luck! In today's recessed economy, foreclosures are occurring at an unprecedented rate. In most suburban neighborhoods, two of every ten homes are up for sale. Although not every house is cheap, there is an abundance of real estate properties priced well under current market value.
A large percentage of cheap homes from sale are foreclosure properties. However, great deals can be found in bank owned, short sale, probate and "For Sale by Owner" real estate. Each type of property has its own set of pros and cons. It is crucial to thoroughly understand what is involved. Otherwise, the cheap homes for sale could end up being one big money pit.
Foreclosed homes are properties which have been seized by the Sherriff's office or surrendered by the homeowner. Many foreclosed homes are in need of repair. Oftentimes, creditor and tax liens are attached to the real estate. The Borrower is usually upside-down on the mortgage and owes more than the house in worth.
The lender wants to recoup as much of the balance due on the mortgage note as possible. Once the bank forecloses on the home the property is scheduled for sale through auction. Foreclosure homes are generally priced to include the balance of the mortgage note and any outstanding liens or judgments.
While cheap homes can be found through foreclosure auctions, investing in bank owned property can sometimes yield a better deal. Also referred to as real estate owned (REO), these properties were once foreclosure homes that didn't sell at auction.
Once foreclosed homes are returned to the bank, the mortgage no longer exists. In most cases, banks negotiate with creditors to remove property liens. The houses are sold directly through the loss mitigation department of the bank. In some cases, REO properties are sold through designated real estate agents.
Many bank owned listings include a variety of cheap homes for sale. Most banks provide a listing of REO inventory on their company website. It usually takes some digging to locate cheap properties. However, if you snoop around long enough, chances are you will find a good deal.
When Borrowers are facing foreclosure, lenders will occasionally allow them to participate in a short sale. In essence, lenders accept less than is owed on the property. In the past, short sales were a good way to purchase properties at cheap prices. With today's upside-down housing market and credit crunch, short sales aren't nearly as good of a bargain as they used to be.
Cheap homes for sale can sometimes be found through "For Sale by Owner" (FSBO) properties. This is particularly true if the house can be purchased as rent-to-own or if the owner engages in seller carry-back financing. When engaging in these types of real estate transactions, it is crucial to have legal documents executed by a qualified real estate attorney.
A lesser known, but highly effective way to locate cheap homes for sale is by searching probate records. Probate is the process used to settle estates. When a person dies, everything they own is held in an estate overseen by the probate court. Depending on the circumstances and complexities of the estate, it can take months or years to complete the probate process.
Every estate held in probate is administered by a probate executor. Generally, this is a family member. The Executor must take inventory of the decedent's assets, pay bills and outstanding debts, file a final tax return, and provide accounting of the estate to a probate judge.
If the decedent owned real estate, the estate administrator is responsible for securing the property and keeping it properly maintained. If a mortgage exists, the payments must continue to be paid during probate. This can place a heavy financial burden on the estate.
Oftentimes, probate executors are eager to sell the real estate under market value. When searching probate records seek out estates with real estate holdings and administrators who reside out of town. Chances are good multiple cheap homes for sale can be found at the local courthouse.
Published on November 16, 2008 at 05:59 PM