How to Buy a Bank Foreclosure
Buying a bank foreclosure, or any foreclosure for that matter, is about persistence and knowledge of the trade. Banked owned properties come in many flavors from pre-foreclosures to REOs. Some can be great deals and some might not be so make sure you do your homework. Some people even make buying bank foreclosure a career, while others just try to get a great deal on their first family home.
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Instructions
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There are many different kinds of home foreclosures. Pre-foreclosures can be attempted to be bought before the listing goes on the market. Government foreclosures are also available by the Housing and Urban Development Department, also known as Hud foreclosures. Bank owned foreclosures can be found through agents and online banking sites as well.
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CALL YOUR AGENT. The best place to find pre- foreclosure listings is a real estate agent because they will have the inside track on them. If they know they have a buyer lined up they will put out an effort to find something for you.
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Call your local banks and asked them about REO listings. REO stands for real estate owned and is a little different than a foreclosure. Banks try to sell their foreclosures at auctions which sometimes do not get bids on them. Afterwards, the bank wants to get rid of the house as soon as possible. REOs can be a great deal but sometimes there are hidden problems. Make sure to get an appraiser to look at the house before you buy.
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bank owned foreclosure lists and other foreclosure lists can be found at RealtyTrac and other companies. Do a search and many companies come up. The only problem with online bank foreclosures is the competition.
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Drive around your neighborhood looking for signs. Although this method is a little weird, it is really the best way to get first pick before anyone else does. Sometimes you can go in with cash to the people living there and make an offer. A friend of mine has made a career out of finding signs and walking up to the door with a check in hand.
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Tips & Warnings
Always research your local foreclosure market through free online resources before going further.
It's always ok to negotiate, even if banks act like they can't. If someone is in a good position to buy, they will negotiate.
Be patient, don't feel you have to jump on the first property you find.
Resources
- Photo Credit kevin kieffer
