Repo homes are also known as real estate owned properties (REOs) or bank foreclosure homes. When a homeowner cannot make the mortgage payments and defaults on the mortgage, the lender starts proceedings to repossess the home. When the repossession process is finished, the lender owns the property and sells it to recover their losses. If you want to invest in foreclosure homes and real estate properties but your budget is limited, then purchasing repo houses is your answer.
Repossessed homes present a great investment opportunity since the lender is in a rush to get rid of the repo houses, and will often sell them at a price that is lower than the market value. It is not uncommon to see repossessed homes sold at a 10, 20, or 30% savings. However, you must inspect repo homes carefully before you buy. Some of these homes have been neglected because the owners did not have the means to keep them up, or because the repossessed homes have been vacant for a long time. You need to add the cost of repairs to the cost of the homes to determine if you are indeed getting a good deal.
Government repo homes investing are properties that were financed using FHA insured loans. When owners default on these loans, the lender forecloses on the property and the FHA reimburses the lender for their losses. These government repossessed houses are then sold to the public, usually at real estate auctions. You can also get a great deal on other types of real estate foreclosure properties to invest in, such as multi-family rental units, HUD homes, VA repo homes, government foreclosures, and other repossessed properties. When you join our foreclosure listing service, our experienced professionals will help you select the right repossessed house for you to invest in.
http://www.foreclosuredeals.com/repo_homes.htm
Source: www.isnare.com
