What to Remember When Buying a Foreclosed Home

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<p>What to Remember When Buying a Foreclosed Home</p> <p>What to Remember When Buying a Foreclosed HomeKevin Fitzgerald, U.S. Advisors</p> <p>IntroductionKevin Fitzgerald, former CEO of U.S. Advisor, LLC, has built a respected career in real estate investment. Since working with U.S. Advisor, Kevin Fitzgerald has led Global Capital Advisors, LLC, and has complemented his work with expertise in the acquisition of foreclosed single-family properties.</p> <p>Foreclosed homes can make excellent real estate investments for both individual buyers and companies, but there are a number of factors to consider before purchasing one of these houses. Foreclosed homes, also known as bank-owned or real estate owned (REO) properties, typically sell for much less than similar homes in the surrounding area. However, the sale process lasts longer because potential buyers must go through the homes lender or bank to negotiate the purchase.</p> <p>Buying a Foreclosed HomeThe low price of a foreclosed home may seem attractive to buyers, but it is important to remember that these properties come with higher risks than typical houses. Sometimes known as distressed properties, these homes may require repairs because the previous homeowner failed to maintain the property. As such, buyers generally acquire these homes as-is and must pay out of pocket for updates. At the same time, many foreclosed homes provide good opportunities for house flipping. With the right renovations, these houses can turn around quickly and sell for a much higher price.</p>