Essentially a foreclosure is a home that is bank owned. This typically happens as a result of previous owners defaulting on their mortgage payments. Because they could not afford to make the payments on the house, the bank reclaimed the home. Generally speaking this situation has pros and cons for a potential buyer.
Pros of shopping for a foreclosure
Typically (although not always) the bank is looking to recuperate the money it was owed by the previous owners. This means that a home may be listed well-below its value, or at a price that will cover the banks losses, rather than garner a large profit. This is not always true, however, so it is important for you to discuss the asking price with your realtor to decide if both the price and the property are…
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