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Consumer Report: Benefits and Pitfalls of Buying a Foreclosed Home, a GoBankingRates.com Examination

Homeownership has never been more affordable than it is now, especially when it comes to buying a foreclosed home. www.GoBankingRates.com explicates the pros and cons of buying a home in foreclosure, and explains the intricacies of the foreclosure process to help buyers make an educated home purchase.

EL SEGUNDO, CA, January 14, 2013 – With home prices and mortgage rates today at all-time lows, it's a good time to buy property, and inexpensive time to buy foreclosed homes. However, a Go Banking Rates explains that although prices and mortgage interest rates are low, buying a foreclosed home is not without its disadvantages.

The investigation cites the primary advantage for buying a foreclosed home is that homeowners and banks are highly motivated to sell the property.
“Borrowers who have defaulted on their home loan are not in a position to withhold a sale for a higher price,” explains Jennifer Calonia, Go Banking Rates’ finance expert. “Banks, too, are quick to shed the dead weight of a foreclosed property, in hopes of minimizing their losses.”
Despite the financial benefit of buying a foreclosed home at today’s low mortgage rates, the report reveals reasons why buyers should be wary of foreclosure properties, including:
  • As-is property sales (bank will not perform any needed repairs)
  • Potentially buying properties unseen and without inspection
  • Risk of questionable damage or theft by defaulted owners as retaliation

The report describes the various foreclosure sale types that home buyers should be aware of, such as direct sale by homeowner, short sales, foreclosure auctions and real estate owned sales. As each type of foreclosure sale presents a different set of requirements and restrictions, the report also details which precautions buyers should execute with each type.

View the full report.

About Go Banking Rates
www.GoBankingRates.com is a national website dedicated to connecting readers with the best interest rates on financial services nationwide, as well as informative personal finance content, news and tools. Go Banking Rates collects interest rate information from more than 4,000 U.S. banks and credit unions, making it the only online rates aggregator with the ability to provide the most comprehensive and authentic local interest rate information.

Additionally, Go Banking Rates partners with a number of major media outlets such as Business Insider and US News & World Report to provide compelling and edifying personal finance content. Its expert editors have been featured and quoted on several premier finance websites such as Yahoo! Finance, Forbes, The Street, Huffington Post and more.

GoBankingRates.com belongs to a network of more than 1,500 finance websites, including GoInsuranceRates.com and GoFreeCredit.com. These sites receive more than 2 million visits each month.

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