One of the biggest advantages of the real estate market in 2012 is that there are a lot of Orange County foreclosure homes and there are even more foreclosure opportunities available throughout California. If you’re not sure if you should buy a foreclosure home yet vs. purchasing a short sale home, here are the top advantages to buying a foreclosure property.
The Seller Will Be Motivated To Move Fast
Once a seller has missed their payments and received the notice of default from their bank they will be motivated to take action quickly and this is great for the buyer because, it means that the buyer will be more likely to purchase a foreclosure home that’s being sold far below what its market value should be.
A homeowner, who is currently going through foreclosure, will be more motivated to sell their property, including doing the following:
- They will be more open to offering concessions or credits at closing.
- The seller will likely work harder than other sellers to insure that their property will close quickly.
- The buyer will have the opportunity to do all of the necessary inspections plus research the title
- during the contingency period.
Cash Is King
Buyers who pay cash for a foreclosure home will be able to dramatically reduce their competition and can have confidence that they will be able to quickly get into the home of their dreams. Another advantage of foreclosure is that banks are typically more motivated to sell foreclosure homes and they will even go as far as negotiating the price down, offering a more affordable down payment and modifying the escrow length to make the home very attractive for the buyer to purchase it.
Unlike other forms of real estate investment, with a foreclosure the buyer will be able to obtain the title without having to worry about any back taxes, liens or “skeletons in the closet” that remain from the previous owners.
When the buyer purchases the foreclosure property, the home will be move in ready and they won’t have to wait for the old occupant to move out.
Many Financing Options Available
If you’re a first time home buyer, and aren’t able to pay in cash, there are a wide variety of financing options available for home buyers who are considering purchasing foreclosure homes. Thanks to the large amount of foreclosure homes available in Orange County and across the United States, many lenders including: Fannie Mae, have special financing programs available that enable first time home buyers to get into foreclosure properties sometimes with no money down, this is especially true for homes in rural areas and farming communities that have been hard hit by the economic recession.
Banks Want To Move Their Inventory
Due to the economic recession there are a lot of Orange County foreclosure homes on the market today and there are many more foreclosure homes available across the United States. Instead of continuing to let a home sit vacant for months or over one year, a bank will be motivated to sell that foreclosure property because, they know that every day the home sits vacant, it risks the chance of becoming uninhabitable and they would rather re-coup their investment on that home rather than get nothing from it at all.
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