[Volume 1, Issue 4]TheHomebuyer’sGuide to BankOwnedForeclosures ContentsForeclosure auctions are the most common Introduction……………………. 1type of foreclosure sale, but not allforeclosures sell at auction. Some fail to meet Steps to Buying the Home…..2the minimum desired bid. In some cases,particularly in the case of government Contact Info………………………. 3foreclosures, the lender makes the highest bid.Once the lender has gained ownership of theproperty, it is considered to be Real EstateOwned (REO).
2 Some buyers and investors prefer buying foreclosed homes from the lender rather than through a short sale or auction. Investors particularly like being able to negotiate directly with the bank or lender as opposed to the homeowner or a trustee. This guide will show you the benefits, steps and tips for buying foreclosed houses owned by a bank or lender: Hire a realtor: Some lenders are overly cautious about selling foreclosure homes to unrepresented buyers. Even experienced buyers may want to consider hiring a real estate agent. Research the market: Find out for how much similar foreclosures in the area are selling. You should research the regular housing market as well, especially if you intend to resell the house. Apply for a loan: Getting pre-approved for a loan greatly increases your chances of successful bids on foreclosures for sale. The lender will likely want to see proof that you can afford the home. Inspect the property: You’ll want to factor in liens and the cost of repairs into your offer on the house. If you have time and permission, run a title search and hire professional inspectors. Witness other bank sales: You may want to witness other sales by the same lender to form an idea of how they do business. They may be expecting things like a minimum upfront payment. Make your bid: Base your offer on everything you’ve learned thus far. Take the cost of similar real estate foreclosures into consideration. Subtract this by the estimated cost of repairs and liens.
3 Be as precise as possible when estimating the value ofForeclosure DataBank foreclosure properties. Lenders don’t provide allowances for repairs. This is something you should take into1602 Alton Road #432 consideration when browsing foreclosure listings. ThisMiami Beach, FL 331391-888-596-9279 will also give you an idea of how much money you willForeclosureDataBank.email@example.com need to take out on a home loan in order to repair andThe biggest foreclosures database on raise the value of any home foreclosures.the webFind us on the Web:www.ForeclosureDataBank.com Do you need to know more about bank owned foreclosure sales? Read our blog: http://www.foreclosuredatabank.com/bank_foreclosures .htm