How To Buy A Bank Owned Foreclosure/REO
As foreclosures reach record numbers banks are finding themselves swamped by a rising number of bank owned foreclosure property. Banks are keen to get rid of these as quickly as possible because they are costly – the bank still has to pay taxes, insurance and related costs on them and they want to recover money owed on them. This makes bank owned foreclosure homes a great way to buy real estate at prices way below market value.
When a foreclosure property is passed in at auction because no one bid on it, the property is taken back by the bank and becomes a bank owned foreclosure or REO which means Real Estate Owned by the bank.
The bank is not a seller of homes, so they will put these foreclosure properties in the hands of a real estate agency to sell on their behalf.
In order to find bank owned foreclosure property for sale, you can contact banks, real estate agencies or the most time-efficient way is to look for them on the internet in foreclosure listing sites. They’re available to look at 24/7 on the internet and you can choose to look at free or fee-based listing sites.
The free ones usually have good basic information like number of beds/baths, address, price and maybe a photo. The fee-based listing sites give a lot more detailed information about each property like data from property tax rolls, the lender’s files, assessed value of the property and even the local school districts. There is also contact information on the person mananaging the property for when you want to look at the property or start purchase proceedings.
Once you identify a property that meets your requirements, you then get in touch with the real estate agent whose name is listed with the property details to organise an inspection.
If you are happy to proceed with the purchase of the bank owned foreclosure you need to submit your offer and written contract directly to the bank or through the real estate agent, together with an earnest money deposit anywhere in the vicinity of $500 to $5000 depending on the value of the property and the bank’s requirements.
Buying bank owned foreclosure property is an excellent way to buy a home of your own or an investment property at prices way below market value. If you want to save time looking for foreclosure property and find all the information you need about it quickly and in one place we highly recommend you try foreclosure.com. You can test run their service FREE for 7 days here.
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