Buying Foreclosure Homes - Pros and Cons of Buying REOs

Buying Foreclosure Homes - Pros and Cons of Buying REOs

Even if you are the winning bidder at a foreclosure auction, doesn't always
mean that you will own the house. In fact, some states have what is referred to
as redemption laws. This means that delinquent borrowers are given extra time to
return their mortgages to good standing. If this happens the original owner will
keep his home and you will be out of luck.
It's also important to realize
that many people simply do not want to lose their homes. When served with an
eviction notice some will comply with the notice, but others will fight to stay
in their home. There are even cases where legal proceedings are brought against
the new buyers.