Foreclosed real estate is one of those real estate properties, wherein the owner of a property has a default in his payments. This is on the mortgage by his lender and in turn, he has to give up the property to the lender.
As much as 4% to 5% of the loans are given for buying a property is defaulted and the property is foreclosed. According to Mortgage Bank Association of America, statistically one million mortgage loans default on the 20 million home mortgages. This offers a tremendous opportunity for investments in those areas. You can head to http://instratany.com/ to buy nomad apartments.
Foreclosure Purchases are categorized into some main types.
1)Purchasing at a foreclosure sale
A court auction process is through which the foreclosure sale happens. The potential buyers are allowed to inspect the property prior to the auction. The highest bidder wins the auction and the property is delivered 'as is' and is free of any creditor’s claim over the property.
When you plan to purchase a property at a foreclosure sale, you have to participate in the bidding process. Before you participate in the said bid process, check to make sure that the title of the property is correct and see the true value of the property in the open market. When you win a bid, you are entitled to the property and are given a 'Certificate of Purchase', which you can use to get interest money on the mortgage on the property.