Most real estate investors turn to bank owned listings because they realize the potential to turn a good profit on these properties. Banks appoint licensed real estate brokers and agents to sell off their inventory of foreclosed homes, after these homes failed to sell in auctions. Banks are usually keen on selling off these homes as this is the only way that they can recover their losses from the mortgage default that caused the foreclosure.
An advantage to purchasing bank owned listings is that banks only aim to recover the value of the outstanding debt owed on the property and this goes directly to a lowering the price of the home. Banks also offer other perks and discounts to sweeten the deal and sell the property as quickly as possible.
Savings on bank foreclosures can go as high as half of the real value of the property. Plus you do not need to go through the bidding war that takes place at home auctions. Indeed, purchasing a foreclosed property from a bank is less stressful and generally simpler.
Bank owned listings usually come with clean titles, saving buyers the burden of conducting a title search. Some banks go the distance by repairing minor damages. There is an easy exchange of information and a more thorough inspection is possible. But buyers should also do their own research to know whether the home is priced fairly. When the buyer makes an offer, the bank has the right to present a counter-offer. Buyers can make one last offer to the bank's counter offer. The manner by which banks transact for the sale of their homes is so good that some buyers end up purchasing more than one home.
Educate Yourself on Bank Owned Listings
There are numerous foreclosure listings service web sites that provide in-depth information on the inner workings of bank owned listings as well as all other foreclosures. These online companies pride themselves with having a comprehensive database of foreclosures. Their service include details on all homes listed, including the price, the condition of the home and the contact information. If you are wary of making a commitment to any particular site, you may opt to test one which offers a trial period first before deciding if a subscription will be good for you.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.