Are There Ethical Dilemmas in Real Estate Investing?

It would be next to impossible to ignore the news reports of the current mortgage crisis. After all, the number of homes that are being foreclosed upon is now in the range of millions and that surely has gotten the publics attention. It has also widely opened the doors for real estate purchase and investment opportunities as a great deal of property can now be purchased at relatively lower market values. There are some individuals, however, who may feel certain qualms about purchasing homes during foreclosures as this may seem like taking advantage of a downtrodden person. Such an attitude it not necessarily correct.

A foreclosure simply means that a mortgage has been defaulted upon and the lender is attempting to recoup their money through seizure of the property. While there are definitely some heartbreaking tales associated with foreclosures the fact remains that a foreclosure – much like the initial home purchase – is a business transaction. Banks simply can not lend out money that is not going to be paid back. As such, the inclusion of a buyer of the foreclosed upon property is simply another link in the chain of these business transaction. If the person buying has not been involved in any unethical dealings associated with the foreclosure of the property then the buyer is not doing anything wrong. As a matter of fact, the buyer may even prove helpful as the influx of sales cash can be used to pay off a large part of the remaining mortgage. So, do not let public sentiment designed to sway emotions towards a federal bailout put you on a guilt trip.