Filings for foreclosures in California have started to fall. With prices of homes still low, and some stability in the housing market seemingly visible, people interested in buying homes are viewing this to be a good time. These prospective home buyers are looking at California foreclosed properties as viable options because of the discounted prices they are often sold at.
California foreclosed properties can be bought either as REO homes or as HUD homes. HUD homes are those which have been foreclosed upon by different government agencies and are passed on to the Department of Housing and Urban Development to be sold. Foreclosed homes with FHA backed insurances can also end up selling as HUD homes. HUD homes are sold through sealed bids being placed through HUD approved realtors.
REO homes are those which have been foreclosed upon by lending institutions because of the home owner's inability to pay the mortgage in a timely manner. A lender forecloses upon a home so the loan that is given to the home owner can be recuperated by the sale of the home.
Lending institutions are known to take the assistance of real estate agencies to sell REO homes. However, this is not always the case. You can always approach banks/lenders with queries about buying foreclosed homes.
Looking for foreclosed homes (both HUD and REO) can start online. The internet has a host of sites which cater to prospective home buyers interested in buying foreclosed property California. You can get in touch with realtors who deal in foreclosure homes as they are generally good resources for localized listings.
One important thing to keep in mind before buying a foreclosed home is making time to inspect the house. Inspections are called for because foreclosed homes exist in various physical conditions. Knowing how much you would have to spend on repairs is important before you make your offer.
Remember, foreclosure homes can be a great way of saving money, but make sure you do adequate research before diving in.