Repo Homes

Repo homes is another name for repossessed homes otherwise known as REO’s. With lenders being in a rush to dispose of these foreclosed houses it is often a great opportunity for investment. These units can more often than not be snapped up for 30% or even 40% less than the market price. With foreclosures rising right across USA this market is really hot.

Repo homes are the last stage in the process of foreclosure that starts with the borrower failing to meet mortgage commitments. After a scheduled time period if the monthly payments continue to falter then the borrower becomes delinquent and a notice for foreclosure or premature closure of the mortgage agreement is given to the borrower. It is also pasted on the building as well as posted in newspapers. Foreclosures are on the rise because the mass of the borrowers was not ready for the unprecedented rise in mortgage rates – sometimes almost doubling. The foreclosure notice rules differ from state to state. In some regions it is very quick but in others the borrower gets some time. In a court of law the lender has to prove his or her point and then the auction is allowed to take place allowing the lender to realize dues and payment of other dues like taxes and maintenance charges. If the auction fails to attract a satisfactory buyer then the lender takes over the repossesses the house – it becomes a repo home.

The bank now wants to sell the house and does not want to sit on these white elephants, which are multiplying on their listing by thousands and even millions. The prediction is that the number will increase in the coming year or so. Scouring through newspapers might be a tiring job. So the best thing will be click, browse and park at US Repos to be up to date with the weather as regards repo homes. It will help energy, time and above all money. Comparing will give the visitor an idea that some informing services are outdated and tend to inflate numbers.

There are many advantages in opting for repo homes. It is ideal for those with limited budget looking around to become wealthy via the real estate route. Repo homes can be gold mines if one knows where to dig and look. The price is actually a quarter of the current market rate and the title is clear without any encumbrances. But everything should be done cautiously. The inspection should be done with the aid of a professional in the field of repairs and maintenance. If not then unforeseen exorbitant expenses might suddenly pop up and negate all advantages. Secondly, although the there is no lien and encumbrances, help should be taken from the legal fraternity. One never knows of lurking dangers.

The market is still going down and the usual prediction is that it will fall further. But nobody knows for sure. There is always an element or risk in everything in life.