Foreclosures save you money, but not always a forturne
| For the past several months, interest rates for home mortgages have steadily risen. This factor has caused a ripple effect on the housing market. 1. People who once were able to afford to purchase a home are pushed out of the equation because they simply cannot afford mortgage payments at the current rate. 2. Those who got in on the housing boom with a variable rate mortgage when interest rates were low are now seeing their mortgage payments climb with every increase. They could now be facing foreclosure due to an inability to pay |  |
Foreclosures are a viable option for those looking to save a bit of money on a home purchase. However, they’re not for the weak of heart. Typically, purchasing a foreclosure property requires a good deal of perseverance, research and legwork. First, you must determine how you want to proceed with a foreclosure. Pre-foreclosure properties are homes where the owners have fallen behind on payments. The litigation process may have begun (dependent upon the legalities of each state) and the homeowner typically has been notified that they are in default of their loan. Pre-foreclosure properties may earn you the greatest purchase discount if you contact the current owner and negotiate a price, since many homeowners do not want a foreclosure on their credit history. However, this option is not without risk.
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