Real Estate Buying Bank Owned
Buying bank owned real estate is quickly becoming one of the best ways to obtain reduced cost homes. Bank owned properties are sold through nationwide independent realtors with discounts as low as 30-percent below market value.
Buying bank owned real estate not only saves home buyers and real estate investors money, but can also save time in locating the perfect home. Whether looking for a primary residence or real estate to be used as rental property or house flipping, Century 21 real estate agents can locate a multitude of bank owned foreclosure properties in specific areas and price ranges through the Multiple Listing Service.
Bank owned foreclosure properties can include single family residences, condominium units, townhouses, mobile homes, manufactured homes, multi-family dwellings, vacant land and commercial real estate.
Buying foreclosure property through realtors isn't any different than buying any other property listed on the market. The primary difference is bank owned homes are owned by the bank. There is usually less room for negotiation when buying bank owned foreclosures because lenders have already incurred losses from the foreclosure process.
Lenders remove outstanding liens and judgments in order to sell bank owned real estate with a clean title. This alone can save borrowers substantial time, money and frustration. Additionally, once lenders regain ownership and commence with eviction of foreclosed homeowners refuse to vacate the premises.
Bank owned homes are foreclosure houses that did not sell through public auction. Once these distressed properties are returned to the bank, a realtor is assigned to market the home. Bank owned homes are owned by various lenders and some banks are more open to price negotiations than others.
Just like all real estate owned homes, bank owned foreclosure real estate is sold in as-is condition. Buyers can obtain a real estate appraisal and home inspection prior to closing. If the inspection reveals problems, buyers should obtain repair estimates which can be used to negotiate the purchase price.
In order to buy bank owned foreclosure homes, buyers must obtain prequalified financing and provide proof of funds when submitting their offer. When buying bank owned real estate through foreclosure list, real estate investors and home buyers are exempt from paying buyer premiums and realtor commissions.
Although foreclosure houses are sold below market value, it is vital to conduct due diligence and determine the true costs of buying distressed properties. Many foreclosure homes require extensive repairs and renovations, which could substantially increase the total cost.
One option to buying bank owned foreclosure homes through real estate agents is to seek out private investors who purchase bank portfolios. When real estate investors purchase homes in bulk they obtain wholesale pricing and can pass along savings to individual buyers.
At Simon Volkov, we specialize in buying bank foreclosure portfolios which are presented through our Real Estate Investors Club. Presently, there is no charge to obtain our list of bank owned foreclosure properties. Enter your email address in the Investment Club subscription box on the left sidebar to receive the current list and instant notification when new foreclosure properties become available.