Bank owned homes for sale

Foreclosures

Welcome!

This website is meant to educate the people who want to buy a foreclosure anywhere in the country, or people who are unfortunately caught up in the foreclosure mess, and are looking for relief.

You will be delighted to know:

1. We are not trying to sell you anything!

2. This website is a genuine effort to be a useful resource for you. Please feel free to

contact me with any question or concern. Just your the Contact us page!

Bank Owned Home Buying Guide

Thank you for visiting this site. If you are brand new to Bank owned homes and Foreclosures, please read this short article. We have wealth of information on this website, all at your disposal.

These are homes that have been foreclosed on by the lenders. These are homes that have not sold at the foreclosure auction, and are now owned by the bank.

Are Bank Owned Homes (REO) different than foreclosures?

When a house is auctioned during foreclosure, the minimum bid price for the house usually includes the total loan payoff plus any accrued interest or fees. In today's market where home prices are dwindling, the foreclosure price may be more than the market price, or may not have enough equity to make a good deal to the buyer or investor. In such a case, where the home is not sold in a foreclosures, it ends up being bank owned ( REO ).

The Next Step

After an unsuccessful foreclosure, the bank owned home ( REO ) is usually transferred to an asset servicing company that services the homes for lenders by managing the eviction process, get the home cleaned up, transferring utilities under their name. These asset management companies order what's called a BPO or a broker price opinion to assess the fair market value of the bank owned home, We will talk about BPO's in a little bit.

The Home is now for sale

Unlike popular myth, most lenders look to get the highest possible price from the sale of bank owned homes, Once a home is actually owned by the bank, the bank will not want to sell the home for half of its actual value. Banks or servicing companies most often use realtors to sell bank owned homes. The sale price on the home maybe somewhere around the broker price opinion price.

Most lenders prefer to sell bank owned homes in as-is condition Therefore, it's important that you have done all your due dilligance on the property before signing the dotted line.

An emerging trend in todays market is the portfolio sale. Due to the high number of unsuccessful foreclosures and bank owned homes, the lenders may offer a portfolio of several homes at a discount. The portfolio sells for millions of dollars, however investors may be able to buy at .50 to 60 cents to the dollar.

Negotiating

When negotiating the price on a bank owned home, keep the following in mind; the better qualified you are to buy the house, the more negotiating power you have. I recommend using a realtor to negotiate on your behalf. The realtor may be able to look up comps in the market, and the procuring cost to the bank. This will allow you to offer an appropriate price to for the bank owned home.

Do get pre-approved for the loan before you make an offer the bank. If you are an all cash buyer, play the fast closing card. Offer to close in a week or 2. This may help you get a better discount on the home.

Since most of such homes for sale are as-is sales, please ensure that you have read all the reports, and done your due dilligence.

How to find these homes?

Beware: there are a lot of websites that will sell you the "how to books" to buy foreclosures for pennies on the dollar. They may offer to sell you lists of REO companies or promise you the moon. My personal opinion: STAY AWAY FROM THEM.

The quickest, surest and safest (for your wallet) way to search for and buy these homes, is by using the services of an experienced Realtor. most of the Realtors will have access to bank owned homes that are currently listed for sale.

Happy buying!

Real Estate