how to buy foreclosures

Once you know the default amount the homeowner owes on the property being foreclosed, you have estimate the foreclosed property's fair market value. To figure the fair market value on the real estate, take the default amount owed by the homeowner and subtract it from the estimated fair market value of the real estate to determine how much equity is in the foreclosed property. This figure also gives you a good idea of profit potential. If there is a small difference in the amount of debt owed by the homeowner and the fair market value, it's probably best to keep looking. If the equity is sizeable, there may be enough room for a large profit on the foreclosure.