Bank Owned Foreclosures
How to Purchase Bank Owned Foreclosures
When a home is foreclosed on and put up for public auction, more than likely it is the bank that is owed the note that puts in the highest bid on the property. This is simply to protect their own interest and to try to insure that they end up making at least a little money back on their investment. The majority of people you see at public auctions of this type are more than likely a representative of a mortgage company or bank. Once the auction is over, those bank owned foreclosures are then typically put up for sale by a more traditional means such as advertising through a real estate broker. In this way, the home can be sold near or at current market value hopefully turning a profit for the bank.
You can search online and purchase local listings of bank owned foreclosures. You could also attend the public auctions usually held on the county courthouse steps the first of every month.
Another option is to visit a real estate agent who can show you the bank owned foreclosures in person. Know what type of home your looking for and how much your willing to spend before going in. How long the bank owned foreclosure has been on the market can play in to how willing the bank may be to negotiate with you on the price and options available.
Buying a home or property of any sort is a wise investment if done correctly. Because these bank owned foreclosures are already a risk for loss to the bank that owns them, they do not want to keep them for long. Therefore it presents a golden opportunity for the right buyer.
The bank that owns the foreclosed property is more than likely going to list it at or below the current market value to encourage a quick sell. A lot of times they may offer additional incentives such as discounted rates and offers to finance the property themselves. Most banks who service your mortgage will offer other banking benefits such as free checking accounts, low rate credit cards, auto loans, etc. Buying a bank owned foreclosure can save you a lot of money in the long run.