Each year thousands of families find that they can't keep up with their mortgage payments anymore
. This can happen for a variety of reasons such as too much debt, the loss of a job, illness, or even divorce. Regardless of the reason, bank foreclosures occur when the buyer of the home doesn't keep up with the terms of the mortgage loan repayment schedule.
Some people don't feel right about buying bank foreclosures. They believe it will be bad luck or that it is somehow disrespectful to the family that lived there and their circumstances surrounding losing the home. While this can be a very desperate situation for the families involved, it can be a great opportunity to purchase a home at less than market value.
In most cases the bank will sell the home at a public auction for the amount due on the loan. This can mean that a $200,000 home can be bought for only $145,000 if that is all that remains due on the property. Most bank foreclosures are sold at public auctions. There are several ways you can find out about the auctions that take place in your area as well as others. By law, the banks are obliged to place an ad in the local newspaper. There are also plenty of websites that feature bank foreclosures listings.
Since the property will be sold the day of the auction youll need to do your homework ahead of time. This should include looking at the home and having an inspection done if you are impressed with what you see. You don't want to be stuck with a home from a bank foreclosures auction that has some major structural damage or other issues that are going to cost you a fortune to fix. It is also very important to have financing in place before the day of the auction.