Foreclosures Create a Window of Opportunity

Foreclosures Create a Window of Opportunity

The number of foreclosures in Los Angeles County is seeing a slight uptick compared to a year ago. Foreclosures occur when a homeowner is no longer able to keep pace with the mortgage payments. When this happens, the home is repossessed and then sold among other bank foreclosures so that the lender can regain the money lost on the bad loan.

There are several advantages to foreclosures. First off, motivated sellers who want to move on without a strike on their credit record can accept a lower offer on the property, depending on how much they still owe on the mortgage. Second, there is more time to inspect the property than is the case with auctions. Also, utilities will still be on so a complete inspection will not be impeded. Foreclosures can mean big savings and benefits for the buyers. As the properties are sold at below market value, buyers are allowed to enjoy instant equity and less spending on housing, which can actually mean more financial security. For first-time home buyers on a budget, bank foreclosures create huge opportunities.

Finding out about the right property at the right time is very crucial as well, as the foreclosure market is highly competitive.  Many professional investors find that buying low-cost foreclosure properties is much safer than investing in other types of real estate.

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