How Can I Buy A Bank Owned Property Foreclosure?
It should be a simple task to buy a bank-owned foreclosure, but innumerable purchasers report long waits, lots of paperwork and unsatisfactory dealings with lenders. Why this should be is unclear because buyers want to buy and lenders do not want to be in the real estate ownership business.
The first issue is finding a bank owned property foreclosure. The easy way to do this is to subscribe to RealtyTrac.com. Search through the listings until you find the property which best meets your needs in terms of condition, location, pricing and — if possible — lender-supplied financing.
The second issue is to deal with lenders. You want to speak with lender personnel who deal with REOs — real estate owned by lenders. This may be incredibly difficult. For instance, one investor wrote to me and said that he offered $685,000 for a foreclosed property. Although the lender had an offer in hand, it auctioned the property. The winning auction bid, according to my correspondent, was $457,000. The guess here is that the bank had several departments handling REOs, departments that got their wires crossed.
Third, you can get a bank owned property foreclosure by going to local auctions. If you do this be sure you understand the rules for bidding, when payment is due and the cash you need upfront. As well, do not get caught up in a bidding frenzy and offer more than you ought to pay.
Bank Owned Property Foreclosure
The problem with auctions is that large volumes of bank owned properties are not for sale. This is especially true in the areas of the country with the most foreclosures — California, Arizona, Florida, Nevada, etc. The reason is that lenders want to release their inventory gradually so that prices are not forced down by a sudden flood of distressed homes for sale.
One way around this problem is to hire a real estate broker who specializes in foreclosures, has completed a number of foreclosure sales and has worked with the lender who holds title to a property you want. Such a broker will at least know where to start in the calling process.
© Copyright 