Cheap Homes for Sale
Today, there are cheap homes for sale just about everywhere you turn. Drive through any suburban neighborhood and you're certain to see dozens of "For Sale" signs. Some are homes "For Sale by Owner" (FSBO), others are listed through Realtors. Many are rent-to-own homes, where homeowners offer seller carry-back financing. Several are bank owned and foreclosure homes.
Not all properties are cheap homes for sale; however, a large percentage of houses are priced at or below current market value. Many homeowners need to sell their home quickly to avoid foreclosure and are willing to accept less than is owed on the real estate. This is generally referred to as short sale.
Typically, this type of real estate transaction requires short sale approval through the Borrower's mortgage lender. Short sale properties can be a great deal for investors able to purchase the home with cash. The banks want their money, they don't want the property. If lenders can avoid foreclosure through a short sale deal, there is a good chance they will accept your offer. When an investor or buyer antes up cash they can oftentimes negotiate with the mortgage company to accept a lower offer.
A large percentage of foreclosure properties fall into the category of cheap homes for sale. There are literally millions of foreclosed homes all across America. Many have been vacant for months or years; oftentimes neglected and in dire need of repair. While there are good deals to be found through foreclosure auctions, it is sometimes better to look at real estate owned (REO) properties instead.
REO properties are foreclosure homes that didn't sell at auction. Once returned to the bank, they no longer have a mortgage attached to them. Instead the bank owns the property and is responsible for maintaining it. Most banks work with real estate agents or investors to move their inventory. However, they also work with individuals interested in purchasing properties as their primary or investment home.
Most banks provide a list of bank owned homes on their website. As more Americans lose their home to foreclosure, banks will eventually be forced to liquidate their REO properties for pennies on the dollar.
Currently, most banks are selling REO properties either at or slightly below market value. Considering bank owned homes were once foreclosure homes, chances are high the house will require repairs and renovations. While it may appear to be a cheap home, it could actually end up being a money pit. Make certain to engage in due diligence prior to making offers or closing deals on bank owned homes.
Perhaps the best place to locate cheap homes for sale is through searching probate records. When a person dies, everything they own is transferred to probate – including real estate. Beneficiaries cannot receive distribution until a judge authenticates the decedent's Will and declares the estate has been appropriately handled. In the best of circumstances the probate process takes approximately six months to settle. If there is no Will or family disputes arise, assets can be tied up in probate for years.
During this time, the probate executor is responsible for administering the estate. If the decedent owned real estate, the Executor must continue making mortgage and property tax payments and maintain the property. This can place a heavy burden on the estate.
By probing probate records and seeking out estates with real estate holdings, chances are high you can find multiple cheap homes for sale. Wills are public records and contain a goldmine of information. You simply need to know what to look for.
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