The wish list of all the newly married couples who ain’t bestowed with the legacies of their ancestral property consists of “A Dream Home”. Since, purchasing a house is one of the biggest lifetime investments that one can make, quite a few couples save dedicatedly for several years before they are able to collect an amount that allows them to purchase a house. There are others who act smart by mortgaging a home via a bank or financial institution. Mortgage takes place for a period of several years that might range from 5 years to 25 years or more depending upon your loan amount and mortgage plan. While the EMI of the mortgage plans remain stable for years the financial condition of the borrower changes from time to time. If the financial condition improves that certainly is a good news for the borrowers as they can clear off the debt quickly. The banks and financial institutions charge a small fine for documentation if the loan is cleared prior to a certain duration of time for e.g. some banks might charge a fine if the loan is clear before half the loan duration has passed. On the other hand, when the financial situation deteriorates and the borrower is unable to clear off the debt in the fixed period of time, the home is foreclosed by the lender.

Foreclosure thus is a procedure by which the mortgaged property is sold to clear off the associated loan amount. Foreclosed homes are great opportunities for buying property at discounted rates. Foreclosed homes are generally sold at a price 20 - 40 % less than the on going market rates of the property. Such properties are generally not listed with the local real estate agents or popular real estate websites. Searching for these properties require a considerable effort and social networking. You might have to spend quite a few months looking at local newspapers, yellow pages and observing the abandoned properties before they might be available for sale.

A foreclosed home can be attained in two ways:

1. Via Auction: Whenever a bank or financial institution forecloses a property it conducts an auction. People are free to bid over the reserve price to acquire the property. The highest bidder gets the ownership of the property.

2. Via Owner: Before the property is foreclosed its owner might plan to sell it for a price lower than the market price to clear off the debt. Doing this would enable the owner to retain the credit rating with the bank if not the property.

Foreclosed properties can be found in the posh colonies of the city as well as the worst colonies of the city. One needs to be observant enough to notice such opportunities to avail the benefits. Many individuals make a full time living by selling and purchasing such foreclosed properties

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