According to ATTOM Data Solutions, as of November 22, 2024, there had been 51 year-to-date foreclosure filings in the Frisco real estate market. Considering that the median home value here is a whopping $714,243, it's easy to see why.
The word "foreclosures" may evoke negative thoughts, but that doesn't mean foreclosed homes are already useless. On the contrary, savvy investors can uncover potentially lucrative distressed property opportunities when buying foreclosed homes in Frisco, TX.
Our expert property management team at PMI North Texas has compiled this guide on foreclosure investment tips and why you should consider purchasing distressed homes for sale. Read on.
Texas Foreclosures Explained
In Frisco (and all of Texas), the foreclosure process involving home loans typically only starts when the mortgage borrower is over 120 days delinquent, per the Texas State Law Library. The borrower then has 20 days to reinstate the loan. The lender can begin foreclosure proceedings if the delinquent borrower doesn't pay their dues within the reinstatement period.
Sellers usually sell foreclosed properties to the highest bidders (parties that often pay in cash) at auctions.
Are Foreclosed Homes Always in Poor Condition?
No. The term "distressed" used to refer to homes in foreclosure doesn't always describe their physical condition.
While many foreclosed homes are in poor condition, some are still in repairable, even good condition. They could have only gone through foreclosure because their previous owners couldn't repay the mortgage. As a result, lenders or parties holding liens on the properties had no choice but to seize and sell them to recover a portion of their losses.
Why Frisco Foreclosures Are Worth Investing In
Sellers typically sell foreclosed properties at significantly discounted prices to facilitate quick sales.
So, buying a foreclosed property lets you purchase a property that could be in repairable or good condition for much less than its current value. You'll likely still have to shell out money for repairs or updates. However, once you bring it up to code and in livable condition, you can rent the Frisco property to tenants or sell it for a profit.
In addition, sellers of foreclosed properties are usually in a hurry to close and sell since, at this point, their primary goal is to recoup some of their losses rather than make profits. For this reason, they're unlikely to do something to prevent the sale from going through, such as back out of the deal at the last minute.
You, the buyer, can then enjoy a quicker closing process. The sooner the deal finalizes, the sooner you can profit from your Frisco real estate investment.
Turn Foreclosures Into Income-Generators
Foreclosures in Frisco, TX, in good condition and sold at massively discounted prices, can make for excellent investment properties. So long as you do your due diligence and thoroughly research these distressed units before buying, you can generate huge profits from them.
PMI North Texas can help you throughout the entire process. We're a locally owned and operated property management firm with a reputation for stellar real estate brokerage services. Our team comprises highly experienced Texas real estate brokers, property managers, and accounting experts.
Get in touch with us today for a free consultation to discover how we can help you transform distressed properties into income-generators!
