Bobby Dempsey nails it.
How good -- or bad -- an idea is it to buy a foreclosure, given the current housing market?
Besides market supply and demand, the good part of foreclosure is the price. However, the money thing is not as sweet as before given the current underwriting standards. In fact, getting loans are tougher these days. The dilemma facing some first time buyers is this: Foreclosure is the only type of properties available within their price range. Because conditions of the properties sometime in bad shape, you really have to think ahead - whether you have the resources (i.e. funds and energy) or not to work on the property and bring it to a 'habitable' condition - or what they call 'move in condition' while you're (still) working at it.
From the trenches. A bank-owned condo.
While for investors, gotta keep a couple of things in mind: 1) forget flipping, no more quick profits scheme 2) loans are much tougher to get 3) it's a crowded field for investors.
To sum it up, buying foreclosure is 'not' for the faint of heart.
