Foreclosure Auctions: Mortgage Meltdown Brings New RE Investors to the Table

For years, the Donald Trumps of the world have been making money buying and selling real estate. Most of the “little people” thought it was a game only for the big boys, and never really thought about doing it. However, the mortgage meltdown has piqued the interest of a bevvy of new investors — many are interested in buying foreclosure homes for the first time.

According to the article, At foreclosure auctions, the hunt is on:

While savvy investors have long profited from dealing in distressed properties, the soaring rate of U.S. home foreclosures over the past few years has attracted  mainstream interest and crowds of new bidders.

Upwards of 3 million homes will go into foreclosure this year alone. That leaves banks with a lot of properties on their books — which spells opportunity for those who want to profit from the foreclosure crisis.

3 Ways Banks Sell Foreclosure Homes

Short Sales:  This is where the bank agrees to sell the property for less than what it owed on it.

Public Foreclosure Auctions: This is the literal selling of properties on the courthouse steps. Property goes to the highest bidder.

Post Foreclosure Sales: These are sales of foreclosure homes that have gone back to the lender. They are commonly know as REOs, which is the acronym for real estate owed property.

To learn more, read the entire article listed above.

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