Luanne
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Re:Buying Foreclosed Homes - 2007/02/12 14:18
Hi Chris,
Thanks for the post. You have some great questions. First be sure that you differentiate between the foreclosures and those properties with tax liens. They are two very different categories with two very different processes to acquire them.
The foreclosures: Yes, these are realistic prices. The lender only wants to recoup the amount of the mortgage. This price could be much less than market value- one reason for all the allure in foreclosure investing. Once you identify the contact (the lender), you will go directly through them to discuss the transaction.
Tax Liens: The home you saw listed for $1000 worth $500K is most likely under the tax lien property category. This means that you can purchase the tax lien for $1000 not the property. If this property would however go to a tax DEED auction then the bidding would start at $1000 and most like increase relative to its actual value.
Hope this helps.
Thanks,
Luanne
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