subject: A Bank Foreclosed Home Can Be A Way To Stop Renting And Start Owning [print this page] If you currently rent your home or an apartment, a bank foreclosed home can be a great way to start owning your own home. If you have always dreamed of owning your own home, a bank foreclosed home sometimes also called a Real Estate Owned or REO property can make your dream a reality. REO homes are properties that have been repossessed by lenders after a homeowner has failed to pay their mortgage. The bank or lender is selling the property to earn back the money they have lost on the property. The exciting thing is that the bank does not usually need to ask for the full price of the property, since the mortgage amount may be smaller than the actual market value of the home. As well, banks are not in the business of selling homes. For this reason, they are often willing to sell these REO properties for a little bit less in order to ensure a quick sale.
The exciting thing about a bank foreclosed home is that the monthly mortgage payment on the home may be less or the same as you are paying in rent right now. Since banks want to get rid of REO properties quickly, they may even be willing to negotiate with you, even if you do not have a large down payment available. Since REO properties are priced below market value, they come with instant equity. This can make lenders more willing to consider offers from you, even if you have always rented and do not have a considerable down payment to offer. For renters, a bank foreclosed home is a great first home choice, since it is often as affordable as an apartment and since the bank is very motivated to sell.
by: Joseph Smith
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