Buying bank owned homes are quite popular because banks are inclined to go the extra mile just to sell off these properties. These homes are categorized as non-performing assets in the books of banks or other mortgage lenders and it gives off the impression that lenders have not made very wise lending decisions. So banks offer these homes at discounted rates and with additional incentives just to lower their inventory. Buying these homes usually involve some or all of the following aspects:
Making Contact with Sellers and their Agents
When you have found the bank owned homes you are interested in you should proceed to contacting the bank selling the home or their appointed agent. These homes may be listed in a multiple listings service managed by brokers that will include their charge in the price of the home.
Otherwise you can approach the bank that foreclosed on the property through their REO section. This is where you will express your interest and eventually make your offer for the property. Before making any form of contact, be sure your finances have already been established and that you know how you will pay for your purchase.
In the negotiations phase buyers will bring to light all the information they have gathered on the property based on their research such as the home inspection results and other findings. You can use all of your findings in negotiating for a discount or some concessions. Get an approximation of the break-even price of the property or the amount that covers the losses of the bank. You should also take note of remarkable data or information relating to the neighborhood or community to which the home belongs. Doing your research thoroughly on bank owned homes will give the bank the impression that you truly mean business and they will be more flexible and open to your requests.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.