Foreclosed Homes -What a Deal!!!

The national number of foreclosed homes has radically risen over the past ten years and as savvy consumers it is our job to take advantage of it!! I live in Michigan an area with a struggling economy and a state which had the 10^th highest number of foreclosures in the country according to an article in the Detroit Free Press. It also stated that the number of home foreclosures nationally is up 63% from April 2006 which is drastic and frightening!!

We bought our first home in southeast Michigan in January 2005 we paid 10% below what it appraised at and 25% below market comparables in our area. The home had been vacant for almost six months it didn't require any major renovations we did the basic improvements to make it livable painting, refinishing the wood floors, yard work, replaced all locks and outside doors and that was pretty much it!! Over the next two years we put a little more money in refinishing the bottom level of the tri-level home and also remodeling the kitchen and one of the bathrooms. Every room has been refurbished in this house except one bathroom which is the next major project on our agenda. If the market had continued on its path at the time we bought it I am sure we could sell this home for 30% above what we paid for it only two years ago!! That is not the case with the recent down turn in the market so we are staying put for now enjoying our sweat equity and waiting for the market to turn around so we can do it all over again!!

You may be asking yourself how can I get such a great deal? We hooked up with a local real estate agent in our area that was abosolutely fantastic and walked us through the entire process showing us where to look and what we needed to do. The process is different then if you were to buy a traditional home since it's owned by a bank rather than a person and you have to place bids to buy the home which must be accepted by the bank. I suggest your first step be to get with a real estate agent who is very knowledgeable in foreclosed homes to teach you about the market and walk you through your first one. After that you may be confident enough to do it on your own!!

Here are a few websites you should check out. These are great sites which are generally updated weekly with the most recent in home foreclosures. This will give you a taste for what's out there!!

www.realtybid.com

www.ocwen.com

www.williamsauction.com/

www.hud.gov

You can get such great deals on these homes that even if you didn't think you would ever be able to own a home it may become a reality for you now!!! With a little TLC you may be able to turn someone else's nightmare into your dream home!!