When it comes to buying a home, we cannot stress the importance of having a good real estate agent on your side. This is just as true in Cherry Hill as it would be in any other city, but before we get into that, let’s talk a bit about Cherry Hill and the advantages that it provides for those who live there. First of all, as far as amenities are concerned, Cherry Hill is known for a number of outstanding schools along with the Cherry Hill Mall and easy access to virtually everything else. For those who are looking to raise a family in the area, any New Jersey Realtor will be glad to tell you that it is an outstanding place, and if you really want to land a deal, your best bet would be to start looking for foreclosed properties in the area.
What is a Foreclosed Property?
By speaking to a Cherry Hill realtor you will find that there are a number of foreclosed properties on the market, but what are they? Why are they so much cheaper than any other type of property you might purchase? Fortunately, there are plenty of explanations for this. To understand the concept of a foreclosed home, it is important to first grasp the idea of a mortgage. We may be returning to basics that you already comprehend here, so bear with us a moment.
A mortgage is a loan taken out against a home that you own, and once it is taken, you need to start repaying it after a certain period of time. The size of the loan is often equated to the value of the home or a percentage of the value depending upon the credit of the borrower. In other words, everyone is going to have an entirely different experience when they speak to a New Jersey realtor. There are several different types of mortgage loans, one of the most popular being the fixed rate mortgage loan, which would be used if an individual were going to stay in the same place for an extended period of time. This type of mortgage will be static, meaning it does NOT change with the market. The same payment will persist throughout the life of the loan unless it is re-negotiated or refinanced. The other popular type of loan is the adjustable rate mortgage which is used for short term purchases. Keep in mind however that sometimes, regardless of good intentions, people can default on these types of loans, leading to serious problems. Now, when you have a default on either one of these loans, the bank is authorized to step in and take possession of the property. At this point the homeowner can attempt to get it back, but should they fail, the property will be sold by the bank in an REO resale, usually at a much lower rate. This is where you come in, and you will have the opportunity to speak with a Cherry Hill real estate agent regarding the purchase of this property.
Free and Clear
When you are thinking of purchasing a foreclosed home you will partake of several benefits, including, most often, the waiver of taxes. If the home is in foreclosure there is a strong chance that there are also back taxes owed on it. After all, if the previous owner could not afford to pay for the mortgage then there is a good chance that they could not pay their property taxes. With that in mind, try to consider that there could be thousands or hundreds of thousands of dollars owed in back taxes, which might thwart the wants and desires of a potential buyer, or rather, you. To fix this problem, most banks or lending institutions will simply waive the back taxes, leaving you to pay the mortgage – often at a reduced rate. This will certainly open up more possibilities and give you the chance to own the property you desire rather than worrying about finances.
In the end you will find that purchasing one of these home is easy, but preferable to many other options that you might try looking into. If you are thinking of flipping the home for profit, you will discover that it is easy to not only obtain one of these homes, but likely several. There is a profit to be made and you are sitting right on top of it. Don’t let this sort of opportunity pass you by! Start looking into the different properties today and see what the world of home foreclosures can do for you. Remember, before you get started you will need the best real estate agent Cherry Hill NJ to help you along. Sometimes it really helps to have a professional and expert on your side, so make sure you have the information you need, and most importantly, a property that you want. It’s all downhill from here, and before you know it, you’ll either have a brand new home to live in, or you will be ready to flip one of the most inexpensive properties that you have ever managed to obtain.