Prudential Real Estate Buying Bank Owned Foreclosure List
The Prudential real estate buying bank owned foreclosure list offers home buyers and investors the opportunity to purchase homes below market value. Part of the Prudential Financial Group, this organization has been ranked number two by Forbes magazine as one of the world's most admired companies and takes pride in being an integrity-driven corporation.
Property buyers can view the Prudential real estate buying bank owned foreclosure list at independent Prudential realtor websites. A quick Internet search can provide thousands of local residential and commercial bank foreclosures ranging from single family residences to commercial warehouses and office buildings.
Buying foreclosure real estate can save buyers thousands of dollars compared to other homes for sale in the area. However, the amount of the discount depends on what phase of foreclosure the property is in.
The first phase of real estate foreclosure is referred to as preforeclosure, which means the originating lender has filed a Lis Pendens through the court. This document informs the homeowner that their lender plans to move forward with foreclosure action. Once the Lis Pendens is filed, a public notice is published in local newspapers and real estate investors or home buyers can make an offer to buy the property.
If the borrower is able to cure mortgage arrears and is financially capable of making future payments, the bank can withdraw the Lis Pendens and allow the borrower to remain in their home. If homeowners are unable to make good on their home mortgage loan, the property can be listed through a Prudential realtor.
At the Lis Pendens phase buying Prudential foreclosure real estate is similar to purchasing any property listed through the MLS service. Buyers submit a bid to the listing agent and the homeowner can engage in counter offers. If the preforeclosure home is sold before the property is repossessed by the bank, the homeowner can avoid having foreclosure listed on their credit history.
The next phase of foreclosure involves placing the home for sale through a public foreclosure auction. Buyers can expect to save between 10- and 20-percent off the current market value of the property. Most foreclosure auctions require bidders to register the day before the auction takes place. Once a bid on foreclosure property is accepted, buyers must present a cashier's check to the auctioneer within 24 hours.
If no bids are placed or accepted on foreclosure real estate, the property is returned to the bank. At this point, it is referred to as bank owned or real estate owned (REO). Once the bank regains ownership, they list REO properties through their loss mitigation department or enlist independent realtors to list homes and commercial real estate through the Multiple Listing Service (MLS).
The Prudential real estate buying bank owned foreclosure list consists of multiple nationwide REO homes. Buyers must be prequalified and provide proof of funds prior to bidding on bank owned homes. REO properties are generally sold at competitive prices so lenders can quickly liquidate toxic assets. However, banks do not give properties away because they need to recover financial losses which occurred through the foreclosure process.
Real estate investors and home buyers who are capable of buying foreclosure homes with cash can usually obtain a better deal than buyers who require a home mortgage loan. Cash deals can close within a matter of days, while mortgage financing typically takes 30 days or more. Buying bank owned homes with cash is a smart decision for investors who plan to use the home as rental property or for house flipping.
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