Thursday, November 21, 2019
Mortgages

Foreclosed bank owned homes best for property investment

Foreclosed bank owned homes seem the most ideal solution to those looking to buy a home but cannot afford one on account of how affordable these homes are. Their affordability stems precisely from the fact of their initial owners not being able to afford repayments. But when these homes are repossessed, many of them are returned in less than ideal conditions.

Not very many people would appreciate being thrown out of their home, even if their home is technically the bank’s home. There’s a sense of attachment that people establish with their homes that makes it difficult to tear themselves away from. So it is that when the bank removes the non-paying home owners from their homes, many retaliate by trashing the very homes that they were so completed attached to. And while it may seem counterintuitive for them to do that, it is almost like an act of protest against the bank – the rightful owners – for being removed from their home. Buyers purchasing these rundown homes are best using them as investment buys for investors typically have the money to renovate these foreclosures

So unless you’ve got the money to finance the renovations of rundown bank owned homes that have been foreclosed it’s better to let these homes go to property investors.