image CHAPTER 4

Buyer Beware! Seven Caveats of Investing in Foreclosures

In the previous two chapters, we discussed those elements of investing in foreclosures that are considered fundamental to understanding the process. Before buying and selling real estate in this market, however, there are several caveats, or warnings, investors should be aware of (see Figure 4.1.). In other words, before investing your hard-earned capital in the foreclosure market, you should be aware of these elements that pose additional risk and, in so doing, be prepared to take the necessary precautionary measures. The seven elements, or caveats, here include ensuring that ...

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