| Bank foreclosures get their name because the bank | | | | rides out the market bottom and prices rise once |
| lender with a defaulted loan has, at the end of the | | | | more. |
| foreclosure process, ended up with title to the | | | | So, are bank foreclosures a good deal? Property |
| property. Banks, along with other lenders this year, | | | | selected carefully with attention to the very specific |
| find themselves as managers of an increasing | | | | factors contributing to that deal, has the potential to |
| inventory of REO or Real Estate Owned property. | | | | yield more space for your investment dollar, or a |
| These repossessed properties must be offered for | | | | move up into a more prosperous neighborhood, or |
| sale as soon as possible in order to avoid a range of | | | | simply affordability. Specific factors are the "as is" |
| problems from security factors to the sheer holding | | | | nature of the property offered by the bank, the |
| cost of deteriorating assets These properties, which | | | | likelihood that the property has been in the |
| cover the spectrum of real estate assets from | | | | foreclosure process and then in the bank's hands for |
| commercial to residential, from vacant lots to former | | | | a while, the bank's pricing policy and attitude to |
| speculator and investor assets are now flooding onto | | | | conditional offers. Most bank owned property is |
| a cold sellers market in competition with similar | | | | offered for sale through agents, the bid and counter |
| properties, some with owners facing financial | | | | offer process can be protracted, and vendor |
| pressure to sell, others in pre foreclosure. | | | | financing, rarely possible, is a completely arms length |
| Some real estate investors and a few knowledgeable | | | | affair. Having said all that, watch this space; as the |
| home buyers see the current market as the best | | | | year wears on there can be no doubt that bank |
| opportunity in years to buy well. The home buyer's | | | | inventories of repossessed homes will rise to record |
| intention is to stay put for a while. Buying to hold | | | | levels in some foreclosure stricken states; bulk REO |
| while housing prices correct themselves is likely to | | | | auction sales, aggressive marketing, enticements and |
| mean staying in your home for anywhere between 3 | | | | deeper discounts will be required to move those bank |
| and 7 years depending on the state, county and | | | | foreclosures off the bankers' hands. It's always going |
| metro location. Buying a bank foreclosure is one way | | | | to be up to the potential buyer to do the due |
| the home buyer gets a double benefit from a down | | | | diligence, researching the condition of the property |
| market - the benefit of buying now at a discounted | | | | before making your offer is vital to ensure you get |
| price, then building equity in the home faster as he | | | | the bargain you intend. |