How can this pose as an opportunity to you? If you find a foreclosed property that is for sale for the amount of the lien, the sale is pretty straight forward. Just pay what is owed and the property becomes yours, which can be resold for current property values. If the property is sold at auction, you must do your homework. At auction, the property is put up for sale at a minimum bid, and then bid upon until the person willing to pay the most for it wins the property. By doing your homework, you will understand what the property is worth and avoid over paying for a property that looks great, but is in a low value neighborhood.

A short sale property is when the bank has taken possession of the home and is willing to resell it for less than its value or the amount due on it, to keep its loss to a minimum. This opens up another opportunity for the investor to buy a property at a low price and resell it at current value. Contacting banks and asking them for short sale lists, is an option to buy property this way and another is to contact a real estate agent specializing in short sale properties.

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