Higher Purchasing Power Through Previously Owned Real Estate

March 4, 2010
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Higher Purchasing Power Through Real Estate Owned

The phrase “one man’s loss is another man’s gain” is true to the present economic situation. Unfortunately, many people have lost jobs, been laid off, had salaries slashed and the likes. One of the major aftermaths of this current situation has been the foreclosure of a larger number of homes. Undoubtedly, this is very tragic for the individuals who have suffered this loss, but it is also a bright spot for people who are looking to purchase a home.

What is a real estate owned property? It is a property owned by some sort of lending institution such as a mortgage company or a bank that was not able to be sold at a foreclosure auction. By law, lending institutions most publicly advertise these types of auctions to the general public.

A huge first step is to get pre-approved for a mortgage loan. This gives you an idea of the market range you can purchase within. Then, you can narrow choices down within real estate owned options to the ones you are interested in and can afford. Other aspects that come into play in looking to finance are closing costs, whether or not an escrow account is involved (for taxes and insurance) and how long the mortgage loan exists.