Foreclosure Properties

Foreclosure is defined in the Yahoo! Real Estate website as a process that allows a lender to recover the amount owed on a default loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default or Lis Pendens. Put simply, a foreclosure occurs when a homeowner or property owner can no longer pay the mortgage fees on the property and is forced to give up the land to pay back what is owed.

Foreclosure properties are usually listed in local newspapers, the county deed recorder's office and online database services. If you are interested in properties scheduled for foreclosure sales, you can bid on a certain property at a public auction or buy from a bank. You can also buy a property by directly approaching the owner and offering to buy the property prior to auction. Buying foreclosure properties is a great investment choice since these properties are typically sold at a discount.

Based on RealtyTrac data as of September 2008, the top ten cities with the greatest number of foreclosure properties are Merced, California; Modesto, California; Stockton, California; Riverside, California; Detroit, Michigan; Fort Lauderdale, Florida; Cape Coral, Florida; Vallejo, California; Las Vegas, Nevada and Sacramento, California.