Banks foreclose on houses if the owner doesn’t keep up with their mortgage payments. Then, the bank will repossess the property and sell it at an auction to recover their money. Buying a home that has been repossessed (repo) can be a lucrative and smart purchase if you know what to do. Here’s what you should know about this avenue of homeownership.

The Benefits of Buying a Home Foreclosure

1. Low Price

Banks typically want to sell foreclosed properties quickly to recoup their money. This makes them a highly motivated seller, and they may list the repo home far under market value. In addition to getting a reduced price, you’ll enjoy mortgage payments with a lower interest, as well as lower property taxes, as it’s calculated based on the purchase price.

2. Flexible Closing Time

It may take some time for the property to close, as there may be financial complications the current owner is sorting out. This can be beneficial if you aren’t in a rush, as you’ll have more time to budget, secure financing, and complete any inspections on the property.

3. Access Into a Better Neighborhood

Whether the home is move-in ready or a fixer-upper, a foreclosure often provides the opportunity to move into a better neighborhood that you couldn’t otherwise afford. If you’re looking for homes within a particular development or school district, looking at repo real estate will give you a wider pool of listings to choose from, and the houses will fit more comfortably within your budget.

If you’re interested in buying a home that’s been repossessed, contact the team at Hensley Realty Co. Although they’re based in Russell, KY, these real estate agents are familiar with the housing market in Greenup, Boyd, and Carter Counties, as well as Lawrence County in Ohio. View their current listings online, or call (606) 836-9770 to schedule a meeting with an agent.