What should I know about buying a foreclosed property?
Buying foreclosed homes is an attractive option for investors since it gives you the chance to potentially purchase property at a below-market rate; however, it can be risky. You may have to bid on a property you don't get to inspect. In some cases, you may need cash to purchase if you cannot get a conventional loan on the property.
If you plan on purchasing foreclosed properties, you should do plenty of research on how to increase the odds in your favor. You should consider researching the following areas:
How best you can obtain financing
The going market values in the area you intend to buy in
The best inspectors and repair persons in your area
How to research property histories