Foreclosure home listings are common in San Diego, as well as many other areas throughout the country. Investors often see foreclosed properties as strong investments for the long term. Some are indeed good investments, while others could be a major waste of money. All individuals who are considering purchasing such a property should take the time to learn why the property was foreclosed on, as well as how this took place. This information may help buyers avoid taking on a bad liability.

When shopping for a home you will likely encounter a type of listing referred to as a short sale. At a base level, this is the type of sale in which the price of the home is less than the balance that is owed to the lender. This type of sale is often the result of the homeowner no longer being able to pay the loan as agreed. Instead of foreclosing on the home, the lender may agree to allow the sale of the home go through while taking a loss. Should the home not sell in a reasonable amount of time, foreclosure will likely be the next step.

When you purchase a home, your contract should contain an inspection contingency. Once the property has been inspected, you'll receive an inspection report detailing all the hidden flaws or problems.