how to buy foreclosures

About 3 days ago, I was looking through the MLS system for houses in my area. I stumbled across a house in Troy, MI that appeared to be a beautiful home for a reasonable price.

I researched the house a bit more and determined that it was an REO. An REO is a house that was lost in foreclosure and went back to the bank. The bank owned the house and was trying to git rid of it. The house was listed for $349,900 which seemed quite reasonable.

The bank bought the house back at auction for $312,500. In my eyes that leaves a good amount of equity for anyone buying the house. If you were able to buy the house for around $315,000 you would have approx 25,000 in equity. This would be ideal for someone looking for a primary residence, as opposed to a real estate investor looking to flip the house.

Anyway, I called to look at the house and it was already under contract. I am anxious to see what the bank accepted for the house. I will keep you posted.

For more info on REO's visit:
http://www.massiveforeclosureprofits.com