by Doreen Martel

Created on: January 13, 2009   Last Updated: February 14, 2012

This is a great time to consider investing in foreclosed homes. Despite all that you have heard about the housing market, there are more properties that are available at a discount than at nearly any other time. Deciding to purchase and sell foreclosed homes is not for everyone, only those who have free cash to invest should consider this type of investing.

Why Now?

Today, there are thousands of homes being foreclosed on daily. More and more homes are being sold at foreclosure auctions at a discount of the real value of the property. This means that you can buy and sell foreclosed homes, make a profit and use that profit to increase your savings or to increase your buying power for additional homes.

In addition to there being so many available properties, another prime reason for buying and selling foreclosed homes is that interest rates are currently so low.

Who Should Invest?

If you have a perfect credit record, you have time to research the market and you have cash available for investments, you may be the ideal candidate for buying and selling foreclosed homes.

• Credit Record unless you have unlimited amounts of free cash, chances are that you are going to need to finance foreclosed homes until you are able to sell them. You can request a copy of your credit report from any one of the three major credit bureaus;

• Time in order to be successful at buying and selling foreclosed homes you are going to need time to investigate the properties which you are buying. This may require visits to the property, discussions with local realtors and of course will involve attending auctions. In addition, you will need time to work with potential buyers of foreclosed homes once you have won them at a foreclosure auction;

• Available Cash in order to be successful at buying and selling foreclosed homes you will need to have available cash at least to make your initial investment. While each foreclosure property has different terms, you will be required to make an initial deposit at the time of the foreclosure auction and in a few states you are required to make the entire payment at the time of auction. Unless you have buyers lined up to buy foreclosed homes as soon as you win them at a foreclosure auction, available cash will be a factor in your success.

Obtaining Credit

Fortunately for those with stellar credit scores, you can often get a lending agency to approve a mortgage before you have purchased a property. You will have to set up a line of credit

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