Providence, Rhode Island is a beautiful and desirable city. In fact, the downtown area is part of the National Register of Historic Places. Tourists are attracted to Rhode Island’s bluff coast islands. It’s also one of the best college towns in America. Because it is such a desirable place to live, work and visit, investors and buyers are taking advantage of the numerous opportunities to find foreclosed homes in the Providence area, including federal foreclosed homes and REO’s.
Federal Foreclosed Homes
HUD foreclosures are sold through authorized real estate brokers that list the properties in the local MLS. HUD homes are homes that are insured by FHA, and acquired by HUD after a foreclosure. If you want to make an offer on a HUD home, you must make it through a Realtor. HUD homes are first offered to buyers who are going to live in them as their primary residence. Investors may also make an offer after the priority period for owner occupied buyers has expired.
VA homes are insured by the Veteran’s Administration. VA loans are made to veterans. When the veteran owner defaults, the home is taken back by the VA. The VA also offers foreclosure properties for sale. You can purchase them directly from the VA. Investors may be required to put a larger down payment. You can also check the local newspapers and Internet sites for federal foreclosure listings. You will need cash or be qualified for a loan. HUD and VA foreclosed houses are sold below market value, and in an “as is” condition. You should always have a home inspection so you are aware of the condition of the property. They are good deals because you are getting a property with built in equity.
REO Foreclosure Listings
Besides federal foreclosure listings, you can also find REO (bank owned real estate) properties listed with local Realtors. REO’s are sold at or below market value. They are also sold in an “as is” condition, and you can conduct an inspection. You have to get your own financing lined up, or you can pay cash. You must make an offer through a Realtor. Closings are relatively quick because the banks want to get rid of their foreclosure inventory. REO’s are also good investments for the same reason as federal foreclosed houses. You are getting a property at a substantial discount.
Property auctions are another good place to find Rhode Island foreclosure properties. Auctions are open to the public. The highest bidder is awarded the property. You need cash to buy an auction property. There are a few things you should know about buying foreclosed homes at property auctions:
- Auction properties are sold at or below market value.
- The properties may be in need of major repairs.
- They are sold in an “as is” condition.
- You may not be able to inspect the property.
- You need cash to purchase a foreclosure auction property.
- You cannot get title insurance
- You are responsible for the costs of evicting former owners and tenants.
Auction properties are also great investments, but they are riskier than buying federal foreclosures or REO’s. If you are new investor or first time home buyer, you may want to concentrate on less risky foreclosure property, and purchase a federal foreclosure or an REO.
There are all sorts of good deals on federal foreclosure properties and non-federal foreclosure properties in the Providence, RI and surrounding areas. Buyers/investors should take advantage while there is plenty of inventory and prices are affordable.