Good Time to Buy Foreclosures?
ByIs it a good time to buy foreclosures? Well that depends. First not many people stand on the courthouse steps and bid on a home that is being foreclosed on by the bank. Most people wait until the home goes back to the bank and is an “REO” . What’s an REO? Well it just means it is owned by the bank.
Many of the best deals are bank owned properties. But if it’s under $400,000 and on the Monterey Peninsula then be prepared for a bidding war. Most properties in this price range receive multiple offers. The bank will weigh how much they buyer offers and how much cash they have to put down on the property. Most buyers obtain loans from other lenders rather than the bank that owns the property.
Real Estate is not a “liquid investement”. It is not easy to sell and cash out if you suddenly need money for expenses. In the current market don’t over extend yourself. But there are some great buys out there – but it’s best to be in the position where you won’t need to sell for at least three and preferably 5 yrs.