Foreclosure Auction Properties -VS- REO.....Go With The REO ! by Mik Cohen

Foreclosure auction properties are a H U G E  risk in this 2012 economy because you don't know the property and can't inspect, before bidding, what you might be buying.


People have been pushed to their, financial, limits and are losing/have lost their homes and livelihoods.

In many cases, people have tried every, reasonable, option to resolve their financial shortcomings with the banks/lenders that hold the mortgage on their home, only to be denied and, ultimately, foreclosed upon.

**Understand that this economy has had a devastating effect on home values which, in turn, has compromised earnest owner's ability to, even, sell their homes at the price equal to the debt that they owe on the home.**

That means that many people are stuck and can't sell, but can't continue to pay for, the home that they (And the lender) own.

So - this helpless feeling can - AND DOES - lead to resentment, where some of these "displaced" sellers act out by vandalizing the homes that they're forced out of.
Another major concern is that foreclosure auction buyers, traditionally, NEVER get to inspect/view the interior of the property BEFORE bidding.

BUYER BEWARE - because you might think you're getting that sweet deal at the foreclosure auction - only to find that your winning bid leads to untold secrets that lie in waiting for the rehabber that purchased that "bargain" property.

Go with the REO (Real Estate Owned - Bank owned property).

WHY ?? 
Because, in most cases - you get 10 days to have the property inspected AND, because the bank has already taken possession of the home, it's a "non-performing asset", meaning the bank needs to free up the cash reserves they need (Usually double the amount of the foreclosed debt) and liquidate this liability ASAP !

Once the bank owns (REO) the property AND it sits on the market for 30 + days, cash buyers can buy these up for pennies on the dollar.

This equates to amazing opportunities to buy properties for tens of thousands of dollars less than what someone may have purchased it, at the foreclosure auction, for AND you get to inspect the property BEFORE committing.

Short term, it's damaging to surrounding property values - but long term, the shadow inventories (Properties that the lenders have already foreclosed upon, but cannot put on the market) are cleared out and we can get back on track to a healthy housing value economy.

During that transition from pennies on the dollar to higher values - investors who get in, NOW, stand to do extremely well.

Remember this simple economic fact - when everybody starts to jump in, values climb.
Real estate has a sound history of creating more wealth than ANY other investment.

Get in, NOW, before everyone else does - because when everyone starts getting in, that's when it's time for you to take your profits/margins and move on......

Today's opportunities are historical AND they're all around you.
Don't blow it !

Mik