How to Buy Foreclosed Homes from Banks
Buying a foreclosed home from a bank involves few risks but not necessarily the best deal. Since the bank owns the property, it determines the price of the home as well as many other parameters.
A bank-owned home, also known as a real estate owned property (REO), failed to be sold at an auction and now has been returned to the bank.
The potential purchaser should investigate the bank's obligations and scout out the acceptable market price for the home's area.
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Instructions
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Finding the Right Home Access a database list of bank-owned homes or properties like one of these: Countrywide REO (See Resources), Bank of America REO (See Resources) or HSBC REO (See Resources).
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The Real Estate Agent Find a real estate agent who will investigate the property and help set a price.
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Making the Offer Make a written offer that considers the average market price of a home in the area and accounts for repairs needed. Have the real estate agent fax the letter to the bank.
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Making the Counter Offer Make a counter offer to the bank's inevitable counter offer as a means to keep the price as low as possible.
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A Done Deal Ask for financing to possibly eliminate the need for a large lump sum of money even though most banks don't offer it for REOs.
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References
Resources
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