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Foreclosure Market: A Gold Mine for Bargain Hunters and Real Estate Agents

The increase in the number of foreclosed homes has affected the housing market which is currently experiencing an unprecented drop in property prices. The growth of foreclosures may mean devastation to some but it spells opportunity to bargain hunters and real estate agents.

Interest of investors on discounted properties further intensified the competition among real estate agents. Keller Williams Realty in Tacoma, Washington has offered bus tours of forfeited properties to potential buyers.

However, buying distressed homes is not always a good deal as most buyers perceived them to be. For one thing, reselling the property is difficult because of the unstable housing market.

Furthermore, buyers do not know what they are getting into since they can only view the outside of the house before an auction, and, most often than not, cannot get inside the property.

Sometimes new owners may discover hidden structural damage, undisclosed liens, pending lawsuits on the property and second or third mortgages.

Dave Swadberg, a resident of Bonney Lake, compares the business of buying distressed homes to treasure hunting because parties involved do not know what they will get. According to Kyle White, who buys foreclosed properties at auctions, the biggest problem any new owners can encounter is to buy a property that has drugs on it.

Another problem that new owners may encounter is convincing previous homeowners to leave their properties. Some of these previous homeowners are in denial and may put up resistance when forced to leave their properties. Swadberg suggests negotiating with them and offer them money to leave.

The growth of foreclosures has also influenced some entrepreneurs to create ways to profit. How-to books are published and seminars organized that focus on taking advantage of the crisis.

Some offer their assistance in removing possessions left by previous owners while others promote themselves as interfacers and offer services that include informing families that they are given 20 days to vacate the foreclosed property.

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• Foreclosures Crisis also Affecting Real Estate Agents
• Pre-Foreclosures, a Way to Reduce Foreclosure Homes
• Foreclosures: The Secret to Successful Flipping