Foreclosures are divided between pre-foreclosures which come from the filing of public notice to eviction and REO's or Real Estate Owned which are houses taken by banks and are vacant right now.
For the real estate investors involved in the so-called real estate foreclosure investing as well as first time homebuyers prefer bank foreclosure to any other form of property buying because Real Estate Owned properties offer the safest, easiest method of acquiring property.
REO is when the property fails to sell at auction, or if the lender ends up as the highest bidder. The home becomes REO, or "real estate owned" by the bank. The lenders then try to sell these REO properties on the open market, often through a real estate agent or third-party marketing company.
In markets where real estate is entering a slowdown, especially in those areas where foreclosure filings -notices of default are increasing, lenders face downward market pressures. Consider this, lenders are not chartered to own and manage REO property. In fact, they face scrutiny and pressure from state and federal regulators to dispose of foreclosed properties quickly. Therefore, banks will not hold property. They will sell at auction, no matter what the price is. This process takes time, but favors those investors or homebuyers who are diligent and knowledgeable regarding when and in what time to purchase foreclosure property.
With bank foreclosure homes, you get the following benefits. No property title issue attached here. Once you close, you get title policy without exceptions. Also there are no back taxes because banks have paid everything at closing. The house is vacant, you can get here as much as I want before I close. Equity value is even already settled. There's no need to argue about the correct amount of equity with the homeowner. You can also pick an area and start buying every good deal in sight. In this setup, you deal directly with the bank; you can eliminate the 6 % sales commission if they act fast before the bank lists the property with a real estate agent.
Buying bank foreclosure is the safest method of buying property. The process is easy and many risks associated with other forms of purchase are either eliminated or reduced in the bank foreclosure.
Generally, lenders are reluctant to share their REO lists with the public, although perseverance and knowledge can help, the best option is to develop a network of contacts. To buy bank foreclosure, scout for announcements or notices in the newspapers or from the courts. You can also contact a real estate agent for such notices or use a listing service.
Learn more about foreclosures, pre-foreclosures, and short sales investing from one of the experts of real estate. With 12 years of real estate foreclosure investing, learn his secrets and strategies in making it big in real estate in today's economic slump. Read more - 2364
For the real estate investors involved in the so-called real estate foreclosure investing as well as first time homebuyers prefer bank foreclosure to any other form of property buying because Real Estate Owned properties offer the safest, easiest method of acquiring property.
REO is when the property fails to sell at auction, or if the lender ends up as the highest bidder. The home becomes REO, or "real estate owned" by the bank. The lenders then try to sell these REO properties on the open market, often through a real estate agent or third-party marketing company.
In markets where real estate is entering a slowdown, especially in those areas where foreclosure filings -notices of default are increasing, lenders face downward market pressures. Consider this, lenders are not chartered to own and manage REO property. In fact, they face scrutiny and pressure from state and federal regulators to dispose of foreclosed properties quickly. Therefore, banks will not hold property. They will sell at auction, no matter what the price is. This process takes time, but favors those investors or homebuyers who are diligent and knowledgeable regarding when and in what time to purchase foreclosure property.
With bank foreclosure homes, you get the following benefits. No property title issue attached here. Once you close, you get title policy without exceptions. Also there are no back taxes because banks have paid everything at closing. The house is vacant, you can get here as much as I want before I close. Equity value is even already settled. There's no need to argue about the correct amount of equity with the homeowner. You can also pick an area and start buying every good deal in sight. In this setup, you deal directly with the bank; you can eliminate the 6 % sales commission if they act fast before the bank lists the property with a real estate agent.
Buying bank foreclosure is the safest method of buying property. The process is easy and many risks associated with other forms of purchase are either eliminated or reduced in the bank foreclosure.
Generally, lenders are reluctant to share their REO lists with the public, although perseverance and knowledge can help, the best option is to develop a network of contacts. To buy bank foreclosure, scout for announcements or notices in the newspapers or from the courts. You can also contact a real estate agent for such notices or use a listing service.
Learn more about foreclosures, pre-foreclosures, and short sales investing from one of the experts of real estate. With 12 years of real estate foreclosure investing, learn his secrets and strategies in making it big in real estate in today's economic slump. Read more - 2364
About the Author:
Learn how to do short sales and make money on bank foreclosures with Jeff Kaller, the expert in pre-foreclosure homes. Get his secrets to short sale investing that over 10,000 students have profited from. You could be making money in as little as 9 days...
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