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What are Foreclosure Homes?

Foreclosure homes are properties that have been repossessed by governments, banks or creditors for the non-payment of debt by homeowners. Those properties are then sold, at usually below market prices, to recover the amount of debt owed.

How are Foreclosure Homes Sold?

Foreclosure properties may be offered for sale in several ways:
Direct Sale
An in-house agent would advertise and promote foreclosure homes for sale through online and/or print advertising, signs, direct mail, online listing services and other means generally used by real estate agents.

Through Realtors
Foreclosure homes are in many cases listed for sale with real estate agents. Usually, an arrangement is made with a national or regional broker to market all the foreclosure properties held by a seller.

By Public Auction
The process begins with a public announcement of an auction of foreclosure homes for sale. Usually the notice includes some details on the available properties, relevant dates, auction location and procedures. In most cases the highest bidder ends up with the auctioned property.
Foreclosure real estate may provide great buying opportunities for homebuyers and investors. Discounts of 20 to 50% off the market value may be achievable, representing a substantial saving by any measure.
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