idiots guide foreclosures

Im new to this site, Im looking into foreclosures in RI, providence. Im a First time buyer. I put a post up yesterday, Im looking for any advice as to where to get a reliable listing, any other advice would be great. Thanks

Are you looking to buy before auction, at auction, or after auction?

Im not sure, I thought it was all at aution to be honost with you.

You can buy before auction and get the lender to discount thereby creating free equity. They’re called short sales.

Since it’s your first time, I would suggest being wary about buying at auction. Ask around this site and you’ll hear more horror stories than Tales from the Cript. My suggestion is that you either buy before auction (preforeclosure) or after auction(REO).

Both of them have their pluses and minuses. REO’s tend to be overpriced, and that’s usually why they didn’t sell at auction (though not always). Sometimes the bank may agree to a price thats less than the bank has in the property, and this is called a short sale. These are very time consuming and dont always come together, but it is possible to get a winner via this route.

Preforeclosures tend to be the favorite of many investors, because you actually work with the homeowners to get the deal. This means you get to see the inside of the house(which you usually don’t for a regular auction purchase) and you’re more likely to get favorable terms because you are dealing with another human and not a system as you would when dealing with a bank.

You can get good deals at auction, but buyer beware. Do your due dilligence to the best of your abilities, and make sure you know what your bidding on (true property condition and ALL liens). Make sure you have a maximum bid and never deviate from that.

Hope this was of some help.
Good luck and Happy Hunting :wink:

Thank You both for your advice.