Foreclosure for Sale
When an individual is unable to meet the principal and/or interest payments on a mortgage loan, the lending institution will have to foreclose on the home. When a foreclosure occurs the lending institution repossesses the land and property that secured the mortgage loan. Frequently, in an effort to liquidate the asset, the lending institution will list the foreclosure for sale.
If you have ever browsed through real estate listings for used homes, undoubtedly you have seen a foreclosure for sale. A listing that is accompanied with the title ‘foreclosure for sale’ simply means the prior owner could not meet their financial obligations, the lending institution was forced to foreclose on the home, and now the foreclosed homed is being offered for sale on the market once again.
In the past the term foreclosure for sale may have had a negative connotation. Many people wrongly assumed that there must be something wrong with a foreclosed home, given the different listing title and the lower asking price. In reality, a foreclosure for sale provides an excellent investment opportunity to purchase a home below its market value. When a lending institution has to list a foreclosure for sale, their objective is typically to convert the home into cash as quick as possible. This results in a lower asking price. Many of these purchases are often thought of as an investment property, because the property can be turned into a rental and provide the owner positive cash flows via rental income.
In the book The One Minute Millionaire: The Enlightened Way to Wealth, co-authors Robert G. Allen and Mark V. Hansen explore various investment and wealth creating strategies, such as real estate investment. These strategies offer insight into how to create positive cash flows and wealth. To learn more about investment properties, real estate strategy, and foreclosures for sale please check out the Enlightened Way to Wealth.