When looking at buying some new properties for cheap you may come across tax foreclosures as a good option. These can be very high risk, but they can also be very high reward. The main issue with tax foreclosures is knowing if they are a good deal or if they will be problematic down the road. Here are a few ways to find great deals on tax foreclosures.
- Find an Agent: Finding a real estate agent who is knowledgeable about tax foreclosures can be an invaluable resource, because they can help you find the properties. This works well for people who want to buy a new property, but not so well if you are a real estate agent yourself.
- Bank Websites: Banks who foreclose properties own them and have an incentive to sell them. This means banks will usually list their foreclosed properties online, giving you the opportunity to purchase the home. This can give good information about the home, but it may still hide some of the issues with the home.
- Department of Housing and Urban Development: The HUD has many foreclosed homes listed on their website as well. It is similar to banks where information is there and you can purchase the home, but all the details that make a deal risky may or may not be included.
- Foreclosure Tracking Service. A foreclosure tracking service is a database that tracks foreclosed homes, or homes nearing foreclosure. For a fee you can access all of this information. If you are serious about purchasing foreclosed homes, then this may be a great option for you.
While buying foreclosed homes can be risky, there are ways to find out about them with some research. While you can never know exactly what homes are worth buying there are many places where you can research first before purchasing.