Purchasing a foreclosure can be risky but an often rewarding experience financially and emotionally. Not all foreclosures are good deals; many need in excess of $10,000 in repairs and/or are located in high-risk neighborhoods.
Buying a foreclosure is a dynamic process and what worked one time may not work the next, but there is a basic formula to follow each time. This article is designed as a series of five interelated articles. Each is designed to be read individually but helps if you read them in the following sequence:
- Foreclosure Process, Profitability and Pitfalls
- Pitfalls of Foreclosed Properties
- Financing My Bank Owned Home
- Profitability Model of Foreclosed Properties
- Choosing the Right Realtor
But before you begin you need to understand some basic terminology.