The Pros and Cons of Foreclosures

The biggest pro is the price…Typically foreclosures give you a great discounted price from the normal listing cost.

The cons are that it can be a riskier investment due to unforeseen liabilities since you have to buy the property “AS_IS” in a short period of time. Also, the cost of borrowing goes up because you typically have to get a loan through private money rather than a traditionalloan since it is looked at as a riskier asset.

You should have some experience when buying a foreclosed property and make sure you are getting it at a steep discount (50% or more compared to similar properties)