Where Can I Find Cheap Foreclosure Homes?

Foreclosures, foreclosure and more foreclosures! The number of cheap homes foreclosure available for investing is mind boggling. Last year in December, 109,652 homes went into foreclosure thanks to the adjustable rate mortgages with Texas leading the list with more than 14,000 homes and Colorado having the highest foreclosure rate with one home per 376 homes. The year 2007 has started with an increase in the number of foreclosure homes with Nevada reporting 3737 filings, which is a growth of an astounding 224%. Colorado, California and Connecticut are not too far behind and have also recorded a high foreclosure filing.

There are basically three stages to any foreclosure homes and they are default, auction and REO’s. As a result of the foreclosure, you will be able to find plenty of cheap foreclosed homes across the nation. Cheap foreclosure homes basically mean that these homes have a low price tag. But don’t call into the temptation trap because some of these homes may require a lot of repair work from the inside. Cheap foreclosures are available in almost every state but you need to be extremely careful while choosing your home because a home is almost forever and is considered to be a lifelong asset. Check the home foreclosures before you think of bidding on any one of them.

One of the underlying reasons for the damages to these homes are because once they are repossessed they lie vacant for up to 3 months till the auction takes place. In such a scenario, they are not well maintained and can develop damages to the paint, cracks in the walls, ceilings and tiles etc. Hence it is necessary to check the cheap foreclosure homes before you bid on them. As an investor, buying these homes can make good business sense. You can buy cheap foreclosures and then have them repaired as necessary, which will cost you anywhere between $2000 and $10,000 depending on the home and the nature of the damage. Once the repair work is complete and the cheap foreclosed homes look as good as new, sell them off for a profit. It is a good bargain because you can buy foreclosure homes for $40,000, spend $2000 on repairs and sell them off at $70,000. Your profit will be $28,000.