A distressed property is basically a foreclosure property where the previous borrower couldn’t afford to pay on their mortgage. The great news is that the previous person may have bought the home for 0k but the bank will most likely have it listed for around 7k. The market value or the appraisal on the distressed property may even be well above 0k. Not only is this instant equity for you but it is an amazing savings of money in your pocket. In addition, you can always take the lender down significantly lower than the actual marked down price. If they have the home marked at 7k then you are in a good position to offer the bank approximately 0k for the home. Your chances are very good that they will accept the offer.
A distressed property can give you an extremely low monthly payment on the mortgage. If you are thinking about renting the foreclosure property out to a tenant then you will make a good profit each month on the rent. If you pay the rent toward the mortgage each month then you will pay off the home very quickly. A tenant could virtually pay off your home mortgage in half of the agreement period of the loan.
A foreclosure property is none other than a home that has been lost by the previous borrower because they failed to meet the agreement of the mortgage payments. The best thing that you can do is think about investing in these types of homes because you can make a significant profit each month or by selling it at market value.
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