When it comes to buying a home, you have several options. That includes having a new house built to your specifications, purchasing an existing home listed on the market, or opting for one in foreclosure. While some people shy away from foreclosed houses, sometimes, going this route makes perfect sense.
What Is a Foreclosure?
Briefly, banks own homes in foreclosure. Usually, this happens when the owner falls behind on payments for one reason or another. That could be due to the death of a spouse, the loss of a job, health reasons, and so on.
Once payments fall behind what the mortgage lender allows, it’ll repossess the property. At some point, the house goes to auction. With that process, the bank hopes to recoup as much money as possible.…