Home Foreclosure Market

The Home Foreclosure market offers the opportunity for the general public to purchase homes that have been repossessed by lenders. Although Home Foreclosure listings aren't always as widely accessible as traditional listings, first time buyers and seasoned investors alike often make the effort to find Home Foreclosures. Both have their own reasons on why to buy foreclosed homes, most of which center around opportunities to either save or make money. If you're interested in learning more about purchasing a Home Foreclosure, you can check out our Buying Foreclosed Homes FAQ page to get some useful information to get yourself started.

When Home Foreclosure occurs, the home becomes the property of the lender or lender's insurer (such as FHA/HUD, VA or Fannie Mae). In distressed financial markets, the Home Foreclosure market increases, but even in "good times" the Home Foreclosure market is always active. When a lender takes possession of a property after a Home Foreclosure, the lender then includes it in their portfolio of owned properties and tries to sell the home as quickly as possible.

You may have heard stories about people buying Home Foreclosures for nominal fees, like $1. Although this may have happened somewhere in history, lenders aren't in the business of giving away their Home Foreclosures. They try to sell the Home Foreclosure at market value as quickly as possible. Home Foreclosure bargains often occur when the home needs repair, and the lender acts as an eager seller.