NEW YORK (CNNMoney.com) -- You want to buy a foreclosure? Remember, there are both great opportunities and great pressures and pitfalls in this market.
You have to decide at what stage of foreclosure you want to buy. There are three options: 1. Short Sale; 2. Sheriff's Auction; 3. Repossession, called REO (for real estate owned by the bank).
'The safest and best way to buy is when it's a bank-owned property (REO).'
The biggest mistakes that buyers make when looking to buy a foreclosure are: 1. Not being pre-approved; 2. Not working with an REO Broker.
Not having financing in place: If you don't have a pre-approved mortgage, you're really not in the market. You have to be able to move quickly. Remember that pre-approved financing is different from pre-qualified financing.
Not having a realtionship with an REO Broker: There are many levels of a Real Estate agent, many REO Brokers are also Associate or Principal Brokers. REO Brokers tend to have the inside track on forelcosures and what is coming availble in the market, not to mention they understand what hurdles may come with purchasing an reo.
Map Based Search!
