FRISCO FORECLOSURE
	The Advantages of Buying Bank Foreclosures All liens against the property are removed once it becomes an REO. Unlike properties acquired at the foreclosure auction, REO's can be inspected prior to or during the contract period and can be purchased using conventional financing similar to any other home purchase. REO foreclosures are listed with real estate agents and are added to the MLS making them easy to locate. While many pre-foreclosures are often in deplorable condition, Most REO's have been cleaned up and are in move in condition and almost all will meet lending requirements. Several foreclosures in Frisco Texas have been acquired from homebuilders and have never been lived in leaving them in pristine condition. Some of the lending institution that own the foreclosures will often offer a better deal on financing if you borrow through them. Some lenders that own the property will provide an allowance for certain repairs. While in hot markets, you may not see a difference in price between a REO foreclosure and a normal listing, but during slower markets like what we are enduring now, you can pick up many REO Frisco foreclosure at very attractive discounts. The primary advantage of buying a REO foreclosure.......... banks do not like holding REO's on their books, and try to get rid of these properties as quickly as possible. The best option they have to sell the unwanted homes is to set the price below current market value thus drawing out the bargain hunters ready to jump on the best deals. How much can I really save? Let’s look at this example:   Say you’re in the market for a $300,000 house and the comparable market analyses supports a price of 100.00 per square foot. Wouldn’t it be nice to actually buy the house for $90.00 a square foot?  Saving at least $10.00 per square foot would bring the purchase price down to $270,000 saving a cool $30,000 to use as you wish. Many people buy foreclosures to get a bigger house and some buy to get a lower mortgage payment. In our current market it is very common to see foreclosure values like these, especially in areas like Frisco, McKinney, Prosper and many other DFW suburbs. In this scenario, saving $30,000 off the list price also presents another financial benefit; you will not have to pay interest on the money you never borrow in the first place, saving another $48,263.35. The total savings would be about $78,263.35 of non-taxable money. How many people make that kind of money in one month? There is only one foreseeable disadvantage you have when buying a foreclosed property. Because the actual value of the house is higher than the purchase price, your real estate tax bill will reflect the difference. When the tax assessor values the property, they will use market value for the area and not what you paid at closing, so the taxes you pay will be derived from the property assessment and not the purchase price.

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Revised: 06/17/10