In many places, real estate prices are too high for people to afford. However, there are cheaper real estate deals out there if you know where to look and the process to go through to acquire those properties. In fact, there are certain types of properties that are often sold at cheaper prices and these options may be ideal for you.
When a property owner stops paying mortgage payments, the bank reclaims the property. In a foreclosure, that is exactly what happens. The bank will then want to sell that foreclosed real estate, usually as is without covering associated costs, such as a home inspection. However, the property is generally offered at a discounted price, which can be a bargain for buyers.
Another option is a short sale. This is when a property is heading toward becoming a foreclosure due to the owner not making payments. With a short sale, the seller needs permission from the mortgage company to list the property for sale. In many cases, the property is listed at a substantial discount in order for the property to sell quick enough to avoid going into foreclosure.
When a property’s owner is deceased, the property usually goes into probate. Sometimes, the new owner listed in a will to receive the property does not want it, or no inheritor is listed in a will and the property is turned over to the court. Probate properties are commonly sold at reduced prices to quickly settle a probate case, usually through a probate lawyer and the probate court.
If you are looking for a house but are hoping to find a one that is a bit cheaper than most properties on the open market, you have a few options. Deciding which one is right for you depends on your situation and what type of process you are willing to go through to purchase the property. No matter what economy we are currently in, you will always find foreclosures, short sales, and probate properties available in just about every community across the United States.