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Buying Vacated Homes
There are several ways to go about acquiring real estate either for a residence of or the purposes of investment. The route most people choose is tried and true; they go out with the assistance of a real estate agent and look at houses that are listed in the MLS or other realty systems. Some buyers skip the realtor and the contingent fees and buy houses one on one. The majority of purchases made in these situations are from people who still live in the home they are selling or who have already moved and who are looking to sell. In both cases, the owner still has the deed to the property and will receive the money from the sale.
There is a whole different market out there, one which deals in vacated homes. Some buyers looking for a residence will want to take a look at homes that have had a foreclosure or where the former residents have simply left for financial reasons or because the living situation has become impossible (ie the house is unsafe or just uncomfortable). The owners left because they could no longer afford the house or the property just was simply no longer worth it and they could not afford to fix it up. Most of these vacated properties, however, are bought by investors looking to turn a profit in resale.
Foreclosure
Foreclosure occurs when the owner of a piece of property defaults on their agreed payments and the lender then takes over the deed to the property. Foreclosures are not pleasant for anyone but the lender, including for anyone who is subsequently interested in the property. Looking at a house that has had a foreclosure will often mean that you are looking at a house that needs considerable work done; the owners had no incentive to deal in good faith and were probably quite upset about the whole deal, so they probably left the place upside down. There will be considerable clean-up needed, as well as some repairs to the property. The lending company may take care of some of the maintenance, but this will usually only involve mowing or watering the lawn every once in a while. The lender sees this property mainly as an asset, and has no personal value or stake in it at all.
This can also be a negative point when it comes time to make the sale. Banks and other lenders will often show no interest in the real market value for the piece of property in question; they will be trying to recoup their losses by sitting on the house until they can make their money back or sell at profit. A good strategy in this case is to ask for an appraisal on the home, either by the bank or by yourself. This appraisal will give both parties an idea of the true market value of the home. If it turns out that the lender is suddenly willing to negotiate on the price, then see how low you can get, because the odds are good that they were surprised at the news the appraisal offered.
Fixer-Upper
Most of us are aware of what a fixer-upper is. What most of us do not realize, though, is that many people who purchase a house with the intent of fixing it up and selling for the equity value never do so. It is simply too hard for most people to continue their day to day lives while doing the work necessary to repair and then resell their home. If you are going to try your hand in the flipping market, make sure that you have the will to get the job done and to get it done before you have to pay a higher cost in mortgage fees.
Quiet Title
Quiet title is a term used for a legal proceeding in real estate. The action is filed in a court that handles property matters. The purpose of the action is to quiet any other claims to a piece of property and have it registered as the sole property of the person who filed the action. This action will always include a part that says that the title of a person to the said property is defective in some way, through some method such as a quitclaim or tax issues. These actions are not the most solid recourse, although many people use them to find the real owners of abandoned property, and in the case that the owners are not found they will claim title. Even when settled, though, these actions stand on shaky ground and have a lengthy statute of limitations.
Vacated properties have some appeal to investors as they do not include the human element of emotion that is involved in other types of property sale. In most cases, the buyer will be dealing with the impersonal numbers of the bank, and it will be simply a case of presenting some solid numbers on your part to get the best deal possible. Just make sure that you are ready for the work that is sure to follow to make the property habitable again!
GBrey | 
