Cheap Houses
How to buy a foreclosure home for
up to 60% off its market value

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Cheap Houses
• Foreclosed homes are excel ent options for
homebuyers interested in buying
cheap houses.
• Foreclosure buyers stand to save as much as
60 percent off property market values.
• Thousands of auction homes,
foreclosure short sales and REO properties
are for sale. More homes are listed every day.

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Cheap Houses
• While distressed properties,
fixer upper homes and handyman specials
make up a handful of foreclosed properties
for sale, remember not to assume al
foreclosures are in disrepair.
• There are many quality cheap houses for
sale through foreclosures.
• The purpose of this presentation is to
explain how foreclosures save money for
homebuyers.

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Foreclosure Auctions
• Foreclosure auctions are very common.
• Auctions al ow homebuyers and investors to
make offers on foreclosure properties for
whatever prices they’re wil ing to pay for the
homes.
• Remember, to get the most savings out of an
auction home, research the prices for which
similar foreclosures in the area sold and use
these prices to determine a maximum bid.

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Foreclosure Auctions
• Foreclosure auctions, which are
sometimes referred to as sheriff sales
when conducted by local sheriffs, can
save homebuyers money if they’re
wil ing to research the homes and the
localities.
• The homeowner may have as much as
five business days prior to the sale to
reinstate the home loan, so cal the
sel er named in the listing to see if the
house is stil for sale.

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Foreclosure Short Sales
• Foreclosure short sales occur on
homes that have not official y gone
into foreclosure.
• Homeowners who are unable to
repay their debts on defaulted loans
may opt to make agreements with
their lenders to sel their homes for
less than they’re worth to pay off the
loans. This al ows homebuyers to buy
cheap houses and help homeowners
pay back their lenders.

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Foreclosure Short Sales
• Short sale foreclosed homes also benefit
homebuyers by al owing them plenty of time to
have potential homes inspected.
• Because the home is being sold to pay off the
amount remaining on the homeowner’s defaulted
loan, the home is likely to be listed considerably
below market value.
• Remember that any offers made on short sales
may have to be approved by their lenders.

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REO homes
• REO homes are houses that failed to sel at
auction either because they didn’t meet a
suitable minimum bid or they were purchased
by their lenders.
• Some lenders, such as major banks and
government agencies, wil sel these homes
on their own.
• Because these homes failed to sel at auction,
homebuyers can expect to find homes
discounted even further here.

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REO homes
• Many homebuyers and investors prefer buying
REO homes directly from their lenders as
opposed to homeowners and auctioneers.
• Though not al lenders have dedicated REO
departments, major lending banks and
government agencies wil often sel their own
homes.
• Other lenders may have their homes sold by
third party real estate agents.

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Let’s Review
• Foreclosures are excel ent options for buying
cheap houses. There are many quality
foreclosed homes to be found among
foreclosure listings, as wel as distressed
properties and fixer upper homes.
• Auction foreclosures save homebuyers money
by al owing them to set their maximum bids,
but homebuyers should contact sel ers in
advance to make sure the listings are current.

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Document Outline

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