However, sometimes great deals can be foundbyweeding out a lot of bad deals.
Short Sales – A bank will often take less than the loan amount onaproperty to save the hassle and costs of foreclosing. Thismeansyou can often get a great deal if you can wade through the redtapeand long wait-times that short sales involve.
Tax Liens – When homeowner’s refuse to pay their taxes,thegovernment can foreclose and resell the property. You’veprobablyseen the “Pennies on the dollar” infomercials on latenighttelevision, but this method can be trickier than the gurusportrayon TV.
HUD Foreclosures – When a US government ensured loan isforeclosedon, it often becomes the property of the department ofHousing andUrban Development. It is their job to sell the home andoften willoffer steep discounts in order to move the product.