Banks as home loan lenders would like to sell off their inventory of bank owned foreclosures to mitigate losses they incurred due to unpaid mortgages
. This desire to sell of properties as quickly as possible translates into possible discounts for would-be buyers.
First-time home owners and people in the real estate business, buying bank foreclosures have yielded great benefits in terms of discounts and savings made. If you are in the market for these types of properties there are some things that are worth considering.
Where to Find Bank Owned Foreclosures
Most bank owned foreclosures are released through a Multiple Listings Service managed by real estate agents. They can also be found at online foreclosure listings services. Banks would normally transact only with licensed real estate brokers or agents so it may be a good idea to enlist the help of one. There are some cases where the lender or the bank will be open to dealing directly with the buyer and this could mean a lower purchase price having removed the middle men from the equation.
Once you have spotted the one you like, drive through the property for a cursory look at the home and the neighborhood. You should also begin assessing values such as the point where the bank will break-even on their bank foreclosures, the value of homes in the vicinity, the estimated market value of the property. You should also start planning your finances along the lines of the loan you will take out, your monthly payments any repairs that you need to undertake.
It is now time to make your offer for the property. Bank owned foreclosures are can be bought directly from the bank or through the real estate broker they have appointed. Approach whoever is the contact for the property and ask to be able to inspect it before making an offer. If you like what you see you can immediately make an offer. The offer you make may either be denied outright or be met with a counter-offer from the bank. You can still make another offer based on the bank's counter offer before the bank finally decides to decline or to sell.