Bank Owned Foreclosures Explained
If you’re after a home of your own or want to invest in real estate today, you can do so by purchasing bank owned foreclosures.
They are an attractive proposition to buy with a fast turnaround as the bank is keen to offload them.
They are often are available for well below market value. Read on to discover what a bank owned foreclosure is, where to purchase one and why they’re such a great investment.
What are bank owned foreclosures?
Bank owned foreclosures are also known as Real Estate Owned or REO properties. They are properties that have been for sale at a foreclosure auction, but weren’t sold due to a lack of bidding on them.
When the property is not sold at auction the lender regains ownership of the property. It is now up to the lender to sell the property and try to get back some of the money still owed on it.
Where to purchase bank owned foreclosures.
You can contact the Special Assets department of the bank or lending institution in your area and ask if there are any for sale.
Often banks will get a real estate agency to manage and market these properties for them. The lender will then give you the names of these agencies when you make an enquiry to purchase.
One of the easiest ways to find them is through an internet foreclosure listing site. This way you don’t have to leave home to look for them. Just be aware that not all of these listing sites have REO properties in their database
Why purchase bank owned foreclosures?
The main reason buying one is so appealing is because all liens on the property are removed and any outstanding taxes are paid. You can also inspect the property which you are unable to do at times when they are offered at foreclosure auctions.
The bank usually fixes any repairs needed to the property and makes sure the home is vacated before being put in the real estate agents hands. And the biggest reason of all is that you can save a fortune!
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