re: Information for my fellow Real Estate Investors

quote:

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If the bank sells it at the market value, and writes off the difference, what's the advantage to a foreclosure? Seems like more risk with a disgruntled previous owner?

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The previous owner in a foreclosure has little to no say, they have legally had their property removed from their hands because of not paying their bills.

Foreclosures usually sell for well under market value because they have been uninhibited for awhile. They often times need work, and often times that work has made them uninhabitable and unable to obtain insurance which means they won't qualify for a mortgage. No mortgage means a much a much smaller buyer pool. But many foreclosures just aren't move in ready and need $5000 of work like paint, new carpet, and a good cleaning that most buyers simply don't want to deal with.