Buy at Any Stage

Investing in Houston investment property has become a hot favorite of most real estate investors in America. Since the 2008 recession, foreclosures have been on a sharp rise and can be available at deep discounts.

However, how can you buy these properties?

Foreclosed properties can be bought at three stages:

• Pre-Foreclosure: In a bid to avoid the social stigma associated with the foreclosure process, home owners sell the property directly to the buyers pre-foreclosure. You can make a great deal with these home owners; as they are in a hurry to sell the property and clear their dues. They are ready to turn over the keys and get out from under the burden of the homes financial responsibilities. They are ready to give you the responsibility of restoring the home and bringing it up to code.

• Auction: When the home owner defaults on making his mortgage payments, the bank or lender forecloses the property and sells it at an auction. You can buy such a property at the courthouse steps, and they are often sold at below market prices. However, the biggest disadvantage with an auction purchase is that you cannot inspect the property; the owners are typically still residing there. Yet another problem that could arise later is getting the property vacated.

• REO properties: If the property does not have a buyer at the minimum bidding price; then the property is re-possessed by the lender or bank. He would then sell the property in a bid to recover his dues. The biggest advantage of buying REO properties that they are free from tax liens, debts, etc.You can buy foreclosures at any of the above stages and enjoy successful foreclosure investing.