Purchasing a bank owned home is easier than you think. Many homes go into foreclosure every day without the general public knowing about it. While they are difficult to locate and even more difficult to win at an auction, they can be purchased if you know the strategies that work!
Bank owned homes are usually foreclosed properties and foreclosed properties are usually sold to realtors at discounted prices. Why? Because banks want to recover the money from the foreclosure as fast as they possibly can. This means they will sell for low, low prices. Up to 30% discounts are possible. With that said, how can you get your hands on one of these houses?
Finding an agent that specializes in foreclosures is an important first step. They know how to present themselves to realtors with a past experience in purchasing foreclosed homes. This makes for quick and easy transactions that realtors love. They might also know where to find a surplus of bank owned homes with super low price tags.
Foreclosure listings and bank owned homes are everywhere, you just have to know where to find them. Real estate magazines, newsletters, ezines, Internet search engines, friends and family, REO property lists connected to lenders, government agencies, and The Department of Housing and Urban Development are good places to start your search. Public records might also yield some results for bank owned and foreclosed upon homes. Any lender who decides to foreclose upon a home must also make a report of such at the county clerk’s office.
Foreclosed homes might not always be in the best of shape. Sometimes, they need a bit of maintenance. While this maintenance may not affect you and it may not be important to you, fixing it up is always an option. Many times, a house in need of minor repairs will carry an even deeper discount than a house in pristine shape.
Make sure your credit report is in the best shape it can be. This means no errors, mistakes or other pieces of misrepresented information. Checking your credit report for errors is easy, just ask one of the three major credit bureaus what you can do to have your report inspected.
Sometimes, foreclosed homes have liens, meaning unpaid property taxes. Make sure you are ready to take on their liability or at least find out who is going to be liable for the unpaid taxes.