Bank Home Foreclosures REO
Bank home foreclosures or "bank owned properties" are normally refereed to as R.E.O. or Real Estate Owned. Right now banks have record high REO properties with no end in sight. A house or property becomes bank owned after it has gone to auction and not been purchased by another buyer so the bank had to buy it (pay lawyer fees, back taxes, etc...) and keep the property.
The reason why so many homes are not being purchased at foreclosure auctions, such as court house auctions, is because the majority of houses being foreclosed on today are upside down loans. In other words, more is owed on the mortgage than the property is worth. About 5 years ago you could actually find a lot of good deals at courthouse foreclosure auctions, but today your best bed for a good deal is buying a R.E.O. property.
Most banks have at least one Real Estate agent that handles their R.E.O properties for them. What you want to do is get to know an agent who deals in strictly or mostly REO properties. Most of these agents will work for several different banks and turn you on to other deals that you may not have found out about.
Today, with the great information available on the Internet, you can find many of the big bank REO properties. Each major bank currently has real estate owned department to deal with the huge inventory of foreclosed houses on their books. The banks hate these properties because they are in the money business, not the Real Estate business. They have already lost a lot of money on the property and as time goes on, they will continue to loose more and more money. They get penalized for having to many bad loans and REO properties on their books.
The longer a property has been on the market, the more desperate a bank is to get it off their hands, which can lead to a great deal for you. Be careful and do your due diligence of course, because a property may have been on the market for a long time because it has a lot of problems, but do not let this stop you. You may be able to offer a very low price which will allow you to cover the repair expenses and still sell at a profit (when the market is right to sell of course).
You can also attempt to do a short sale with the bank, but this is usually a lot lengthier process and a lot more work. You have to work with the current owner/resident and it can be a pain. With bank home foreclosures such as REO properties, the old owner/tenants are long gone and the home is ready for you to fix up.
Scott
http://www.homeforeclosurelist.net
The reason why so many homes are not being purchased at foreclosure auctions, such as court house auctions, is because the majority of houses being foreclosed on today are upside down loans. In other words, more is owed on the mortgage than the property is worth. About 5 years ago you could actually find a lot of good deals at courthouse foreclosure auctions, but today your best bed for a good deal is buying a R.E.O. property.
Most banks have at least one Real Estate agent that handles their R.E.O properties for them. What you want to do is get to know an agent who deals in strictly or mostly REO properties. Most of these agents will work for several different banks and turn you on to other deals that you may not have found out about.
Today, with the great information available on the Internet, you can find many of the big bank REO properties. Each major bank currently has real estate owned department to deal with the huge inventory of foreclosed houses on their books. The banks hate these properties because they are in the money business, not the Real Estate business. They have already lost a lot of money on the property and as time goes on, they will continue to loose more and more money. They get penalized for having to many bad loans and REO properties on their books.
The longer a property has been on the market, the more desperate a bank is to get it off their hands, which can lead to a great deal for you. Be careful and do your due diligence of course, because a property may have been on the market for a long time because it has a lot of problems, but do not let this stop you. You may be able to offer a very low price which will allow you to cover the repair expenses and still sell at a profit (when the market is right to sell of course).
You can also attempt to do a short sale with the bank, but this is usually a lot lengthier process and a lot more work. You have to work with the current owner/resident and it can be a pain. With bank home foreclosures such as REO properties, the old owner/tenants are long gone and the home is ready for you to fix up.
Scott
http://www.homeforeclosurelist.net
posted by Irrigationman at
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