2. Assuming foreclosures are great deals. Due to the significant decline in home values, purchasing a foreclosure may not be the best choice. The lender will still try to recoup their investment even if the home value has dropped. You must also take into consideration possible damage to the home from the previous owners, vandals, or from just sitting vacant. The price of the home, together with repair costs, may not make it such a great deal.
Check back later for #3.
