Foreclosures - Visit an Auction or use a Realtor?

By June McCann

I'm know you're in tune to the worries of recession and the real estate crisis going on in the US. This has caused a flooding of foreclosures that is surpassing previous highs. Although you still see older foreclosed homes in run down areas, what's different during this crisis is the quality of forclosed homes and neighborhoods they reside have drastically improved. Even some of the nice estates in wealthy neighborhoods can be found at government auctions for prices much lower than market value.

If you are considering buying a foreclosed home from a government auction then you couldn't be lookin at a better time then now. Before you do though you should be aware of the advantages and disadvantages of buying foreclosures over using a realtor for a non-foreclosure property.

Here are some advantages to purchasing a foreclosed or pre-foreclosed home:

- The main advantage in purchasing a foreclosed home is the below market price.

- Many of the homes are in great condition for what you pay.

- The selection range of home available to choose from is extensive.

- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).

- You are not required to pay certain insurances.

- Landlord or resell venture opportunities.

- Less risky than trading equities in the stock market.

Disadvantages:

- A mortgage could be hard to obtain, unless you have borrowing leverage

- You need to be aware of any existing liens, judgements, or unpaid taxes still on the property.

The most important thing is to make sure that the home you're interested in is clear of all liens. You should also find out in advance what payment options the government auction will allow, and if required have your bank loan in place ahead of time. Make sure you have some decent cash saved up just in case, just as you would for purchasing a house through an agency.

Government auctions are being held regularly across North America. Check the Internet to discover information on the upcoming auctions and the property listings at each auction. Many sites will display images of properties that are in pre-foreclosure (properties you can purchase before the auction) and that will be each particular auction. Buying a foreclosed home through a government auction can be a very rewarding experience, but make sure you do your research first. You may wish to just watch during your first visit to a government auction to gain experience and get an idea of the procedure used. - 23229

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To find an updated list of foreclosures/pre-foreclosures on the top government auction sites click government auctions review or Bank Foreclosures & Pre-foreclosures