A foreclosure home list can free you from today’s high cost of housing and allow you to turn someone else’s loss into your profit. Bank and government foreclosure home lists are where you can find
A foreclosure home list can free you from today’s high cost of housing and allow you to turn someone else’s loss into your profit. Bank and government foreclosure home lists are where you can find land foreclosures. But what are you looking for? Do you want to buy foreclosed homes, land foreclosures without homes, or any kind of defaulted properties? These are all important considerations when looking at a foreclosure home list and knowing the right answer (for you) before you even begin will save you lots of valuable time.
Should your search be for raw land or developed property? Let’s examine both before you start looking at a foreclosure home list:
Raw Land Pros
- Less expensive per acre
- You can mold it the way you choose
- Should have original topsoil in place
- May have some developed trees
- May not have close neighbors
- Typically larger parcels of acreage for sale
Raw Land Cons
- Can be expensive to develop – to build you will need to have a prepared site, a road to the site, a septic system, a well, and power
- It may not perk – very expensive proposition if you have to build a mound septic system
- There may be environmental restrictions that could affect your ability to build or cost you in other ways
- You may not be able to find water close to the surface – making the cost of a well prohibitive
- Some states have extra development fees for new development that can be substantial
- Undeveloped land loans are harder to get and next to impossible if you want a mortgage for no money down. Keep this important point in mind when looking at your foreclosure home lists
Developed Property Pros:
- All utilities are there
- The building site may already be established or at least cleared
- No new development fees to pay
- Any environmental restrictions will have been resolved
- Developed property loans are easier to fund than loans on undeveloped land (and will make it easier to get a mortgage for no money down)
- There may even be a livable structure already there, but if you want to build, try to find land foreclosures with a house or mobile home of little value – keywords when looking at your foreclosure home list
Developed Property Cons
- Much more expensive per acre
- You won’t be able to choose a new building site without considerable expense
- Much of the topsoil may have been removed when clearing
- Some, maybe all of the trees will have been removed
- You will probably have to settle for less property (and privacy) because of the higher cost unless you can locate a land foreclosure with your foreclosure home list for 20-50% below market…
Ideally, the best possible find (short of a rich uncle giving you the property) is to locate developed or partially developed property at a wholesale price. And that is possible if you’re prepared to be patient and take the time to look at the property.
Think you don’t have enough time or using a foreclosure home list is just too inconvenient? Many have felt that way, but frankly, a few wise and savvy people have found using their spare time to research quality properties has turned into pure gold. Why not take advantage of someone else’s loss and put the profit in your pocket…