Buying Bank Owned Foreclosures in a Few Easy Steps

October 2, 2017 Facebook Twitter LinkedIn Google+ Online Auction

Bank owned foreclosures can be one of the best real estate investments you can make. Because the home did not sell at the foreclosure auction, the bank, or lender now takes possession of the home. This is most commonly referred to as a bank REO, or Real Estate Owned. The property has gone back to the bank as none has bid the minimum amount the bank set for the auction.

While it might not seem like now is a good time to buy bank owned foreclosures, but there are a few reasons why this type of purchase will be beneficial to you.

• If the home had two different mortgages taken on it, the first lender gets the home. If the second lender does not make up for the payments owed, or declares its own foreclosure, then the second mortgage is consumed by the second lender.

• Since the home did not sell for the minimum bid at auction, they will be motivated to price it lower so that it is not siting on their books for a long period of time.

Bank Owned Foreclosures Can Be Bought Easily

1. Talk With A Bank REO Manager

Buying bank owned foreclosures has to go through the office that is now managing the property. Talk with the REO manager about the listings available at make offers for buying the one you want.

2. Get Help With An Buyer’s Agent

A lot of times the REO manager will accept offers only through an agent that specializes in real estate and foreclosures. They will know how to negotiate and help you get the home for your price.

3. Wait 30 Days If Bank Doesn’t Sell

Don’t be surprised if the bank, while motivated to sell, rejects your first offer. They are still going to try to get as much as they can. If your offer is rejected, wait for 30 days and resubmit your offer. This time it will possibly be accepted.

Kevin Simpson, has been working on studying the foreclosures market, helping buyers on the finer points of bank foreclosures. Try to visit and begin your foreclosures by state search.

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