Investing in home foreclosures can be very lucrative; however, there is substantial risk involved, just as in any type of investing. Look at some of the pros and cons of three different types of foreclosures.
Buying Bank Owned Properties (REO)
When real estate investors evaluate their options for what types of properties to invest in, some of the first things that come to mind are preforeclosure, short sales, and other types of foreclosure properties. This tendency is a natural one. After all, sellers facing foreclosures are naturally going to be more motivated and that is what most investors are looking for.