Many people dream of owning a home someday and with the current housing market favoring the buyer, this could be the ideal time to buy houses in danger of foreclosure.
But many potential buyers fall prey to myths about these homes, assuming that all of them are in poor shape or in dangerous neighborhoods.
That simply isn't so.
A fair share of homes come from families who have cared for them and were forced to sell when they couldn't keep up their housing payments.
They provide great potential for real estate investors, including those in Massachusetts.
There are many options for buying Massachusetts foreclosures and to save money in the process.
One caution is important, though.
Buyers should not expect unrealistic savings.
Some homes may indeed be half of their original selling price but those in the best neighborhoods and in the best condition may only be 25 percent below normal selling price.
Even so, buying a home now could offer the greatest savings in decades.
For those not yet in the know, a foreclosed home is one where the current owner has run into financial trouble and can't keep making housing payments.
Some lenders will allow a very generous grace period, particularly in today's economy.
Eventually, they have to call a stop to the losses.
This puts many Massachusetts foreclosures on the market.
So how do buyers go about purchasing homes which are being foreclosed - or in danger of foreclosure? One method involves buying directly from the lender, the bank or institution which holds the mortgage.
Since bank managers and staff aren't overly eager to spend time selling homes, they may be willing to cut a deal with a potential buyer.
Talk directly to them about getting discounts in return for a quick deal on a Massachusetts foreclosure home.
Negotiable items may include closing costs, interest rates and down payments.
Of course, the price may also be open to a reduction.
Be prepared to walk away if the deal seems less than desirable.
Know the original selling price for a home in various neighborhoods in Massachusetts, long before it became a foreclosure property.
At the very least, look at the historical high and low prices for similar homes in the neighborhood for a five to ten year period.
Believe it or not, some brand new homes which have never been sold go immediately from finished construction to foreclosures.
Talk to builders or lenders about these hidden gems.
Even if the home isn't exactly like the new home of your dreams, the price reduction may be worth it.
This is one of the best ways to buy a Massachusetts foreclosure.
The money saved can be spent on renovations or those little "tweaks" that put a personal stamp on a home.
Housing auctions are another option.
They can be riskier than working directly with lenders and it may not be possible to even see the property ahead of time, except from the outside.
Getting out and walking around the home may not even be possible.
This means that buyers face the possibility that the auction price may be very close or even on target for the home's actual selling price.
Deals are possible but when it comes to Massachusetts foreclosures, this option is probably not best for the beginner.