[Akay]

...are the advantages?

[infinite crisis 247]

are you asking what a forclosured home is? this home, otherwise known as REO (real estate owned) is a home that was the property of a borrower, but the bank foreclosed on the home because of serious delinquency on the mortgage payments. the bank therefore will sell this home, usually for less than it is worth. this is because the bank will want to recoup at least most of it's losses from the loan, but they know that they won't get the full amount. now, the benefits of this for you are a reduced price. there are major drawbacks. 1. much more chance for things to fall through in a situation like this, as the bank will be very stringent on what offers, contingencies that it accepts. 2. the bank will not pay for any inspections, needed repairs, or closing costs. foreclosure homes are bought with the expectation that it is "as-is". make sure that you get a good home inspection. once again, the bank will not pay for any needed repairs, but the home inspection can give you the ability to get out of a potential financial disaster. you don't want to purchase a home and then find out 3 months later that the foundation is cracked. 3. reduced price will increase chances of a "bidding war" with other buyers. you will lose out to bidders with "all cash" offers. the price could raise rather rapidly, as this is basically an auction.my advice to you would be, if you are a first time home buyer, think twice before buying a foreclosure. if you do buy one, make sure that you have a good real estate agent, home inspector, and mortgage lender.