What is the hottest trend in real estate today? Repossessed Homes
You can’t watch the evening news or read a website without hearing about repossessed homes or repossessed houses. Purchasing repossessed homes (also known as repo homes or foreclosed homes) is one of the hottest trends in the real estate market today.
What exactly are repossessed homes?
Repossessed homes are homes that have been taken back by a bank, government agency, or other lending institution when a homeowner can’t pay their loan anymore. The lender reclaims (or repossesses) the property and then will sell it to make back their money.
What kinds of homes are repossessed?
It isn’t what you think. Repossessed homes are not ramshackle, rundown huts. Repossessed homes are often found in the nicest neighborhoods and are relatively new in terms of construction. People often get in over their heads, buying more house than they can afford. These houses are then repossessed when the occupants can no longer pay the mortgage.
I don’t want a single family home. I’m looking for a repossessed condo or townhouse. Do they exist?
Yes! Any kind of property that has a mortgage can be repossessed. You will find all kinds of repossessed homes and properties besides single family homes. Townhouses, condos, rental properties, vacation homes and single family homes all fall under the category of repossessed homes.
How much does it cost to buy a repossessed home?
Often repossessed houses are on the market for well below their worth. Banks, government agencies and other lenders just want to recoup their losses, so these repossessed homes are sold for what is owed to the bank – not for what the home is worth.
I already own a home. Why do I want to buy a repossessed home?
Do you live in the home of your dreams, or have you settled on something because the mortgage is affordable? Since a repossessed house often costs less than its market value you might be able to trade up to a nicer home for about what you pay right now in a mortgage? Could you use a bigger house? Repossessed homes give buyers more bang for their buck. Have you always dreamed of having a vacation home? Even vacation homes have been repossessed and you might be able to find a place that you can easily afford.
Can I find a repossessed home in my community?
Repossessed or foreclosed homes can be found all over the country, in all fifty states. Some states have higher rates of repossessed homes (like Arizona, Florida, California, and Nevada) but you can find them just about anywhere.
So how do I find a repossessed home?
You can spend hours scouring the internet and websites for banks, searching their databases of repossessed homes (or what they call in the banking industry Real Estate Owned, or REO). You can call all the real estate agents in the community where you want to live and ask them for their listings. You can sit for hours looking at the classified ads for sales of repossessed houses.
OR.....
Or you can find all your repossessed and foreclosed home listings online in a database of government repossessed homes. In one location you can search for repossessed and foreclosed homes across the country. It will save you time and energy while you find the repossessed home you want to buy.