Saving 20%-50% on Your Foreclosure Purchase
Whether you’re looking to buy your first home or build up your real
estate portfolio, foreclosure properties offer you some of the best
real estate bargains. Not only do plenty of foreclosure properties
sell at 30-50% below market value – buying a foreclosure property
can also mean tax breaks, reduced interest mortgages, and low money
down deals.
Foreclosure properties get you the most house for your money, and
even tend to favor first-time homebuyers over seasoned real estate
investors. Government-owned foreclosure properties only allow
owner-occupants to bid on the home the first five days, along with
lower interest rates on mortgages. Also, if you’re short on cash,
creative financing through government loans may help you. And even
if you have bad credit, buying a foreclosure home is not impossible.
If you do have bad credit, you probably already know – a decent
credit score and a bad credit report is the difference between a
qualified home buyer and a bidder turned down for a potential home
loan.
Still, your situation isn’t hopeless, and it doesn’t have to take
years for your credit to slowly shape up. Spots on your credit
report can be wiped away rather quickly and easily.
To get started, the first thing you need to understand – which you
may already know – is that when a credit agency notes you were late
on your phone bill or some other payment, they don’t financially
gain anything. These credit agencies are merely doing their job, and
are recording information that was given to them by a creditor.
Because credit agencies have nothing to financially gain by lowering
your credit score, if you challenge the accuracy of whatever
negative credit item they report, they’ll most likely remove the
item. Think about it: while the credit agency most likely has the
necessary evidence to defend their report in court, they’ll probably
avoid doing so because of the time and money involved. The financial
loss from defending their claim is simply not worth it to most
credit agencies.
Look into challenging some of your negative credit items – you’ll
want to do this properly, and it’s recommended you use a credible
firm that specializes in this instead of filing by yourself. Out of
one hundred cases in which the paperwork is filed correctly, fewer
than one challenger is fought. And as your credit score shapes up,
you’re that much closer to your foreclosure property bargain.
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