The US Government is helping first time home buyers to buy foreclosed properties with a $7,500 one-year Tax Credit for the purchase of foreclosure properties from April 9, 2008 to July 1, 2009. The Foreclosure Prevention Act of 2008, was signed in to law on July 30, 2008, to help boost the housing economy and keep homeowners who are facing foreclosure in their homes.

That's a big savings on top of an already discounted real estate market. In fact, foreclosed homes are often listed between 20 to 50 percent less than market value.

While banks and lenders face a housing crisis bigger than ever before, there are countless opportunities to buy foreclosure homes.

With an abundance of bank foreclosures nationwide, there will be some good deals. However, this does not mean it is easy to find below market foreclosed properties, but it does mean that with persistence you will be able to identify real estate that can save and make you money.

Banks are eager to sell their foreclosure property because they are not in the business of managing real estate, nor do they want to be. Banks are primarily in the business of lending money and have little interest in diverting their resources toward managing many real estate properties.

The expenses of holding foreclosed properties can quickly accrue. These costs include property taxes, maintenance expenses and insurance. These costs continue to eat at the bank profits until the property is sold which puts added pressure on the bank to quickly dispose of the asset.

While banks are clearly motivated to sell their REO foreclosures, this does not mean that banks want to lose money. The banks' goal is to quickly recoup the capital tied up in these non-performing loans and re-deploy it in the form of a new profitable loan.

Typically, the longer a bank holds a property the more unprofitable it becomes.

One of the big benefits to bank foreclosures is that banks may be flexible with the terms and conditions when selling foreclosed property. While banks will always attempt to get the best deal possible, the fact that they are a lending institution gives them the flexibility to be creative and negotiate the terms and conditions of the loan.

This can create a great opportunity to buy property and get financing at a low interest rate.

Most REO bank foreclosures are sold with a good clean title, meaning that all junior liens, or encumbrances on the property are resolved. This means you can buy the property without worrying about any unexpected judgments against the property.

Big incentives to buy REO property today, low price, low interest rate, and tax savings.