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Bank Owned Homes Provide Valuable Investment Opportunities

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By : Julie Thompson    99 or more times read
Bank owned homes are properties that have been foreclosed upon by the bank because of the inability of the owner to make his mortgage repayments. In many instances this has been caused by the increase in interest rates that is sweeping the nation at present. One of the facts of life is that because of this people are losing their homes to banks right left and centre, creating an almost crisis situation in the US at present. Although the present incumbent government have tried to do something to prevent so many foreclosures from occurring, it has not been able to do so, and it looks as though President Bush is about to go out with a whimper rather than a bang on this problem.

The only good thing about so many foreclosures taking place is the fact that it creates a great investment opportunity for people wanting to own real estate. It is definitely not a sellers market, but buyers beware, the economic climate is not so good that bank owned homes can just be flipped for huge profits. It may take some time for the market to stabilize in order to resell these properties for a good profit. But still the wise investors are able to buy bank owned homes, and rent them in order to cover any costs incurred, so the investment opportunity is still very valid.

The fact that so many bank owned homes are available means the banks are often prepared to sell them for less than market value, although some banks wonít budge on this, others are very negotiable and bargains can be found. Buying bank owned homes has less risk attached to it than buying in any of the pre-foreclosure phases. However for those investors who want to do a little more research and leg-work to increase their profits, this could be very worth while.

Some banks will allow you to access their short lists for the best bank owned properties, particularly if you are a client. This is a good way of finding bank owned properties, on the other hand if you are not a client of that bank they might be very tight-lipped about their listings. Listings for bank owned homes fan be found real estate magazines and many realtors have these on their books, but getting a bargain this way is a little dicey.

Online listings are a good resource as you can provide them with your requirements and they will let you know what they have on their books. Going to the county courthouse will allow investors to know what bank owned homes are about to be foreclosed on and this is like advance notice, particularly if you are willing to take the risk of buying on auction. Buying on auction can really improve profits, but there are still risks involved if you donít know what you are doing. The most important thing to do in purchasing bank owned homes is educate your-self, the more you know the better your success will be.
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