There is an endless list of foreclosed homes out for sale in the market today. While an REO bank may only require a 10% down, the mortgage lender may require up to 25-30% down, depending on whether the property is commercial or residential. My real estate agent , who makes commission based on my purchase, wanted me to offer an amount very close to the asking price so that he had a definite sale.
Additionally, a good real estate agent can discuss challenges you could run into with a foreclosed property. Pricing for a foreclosed home is typically set at market value in an effort to move the property quickly. But that average may not be quite as eye-popping this year since many of the new foreclosures stem from problems in the subprime mortgage market.
Since banks are often eager to unload these foreclosure properties, they aim to break even with an asking price that’s typically the sumÂ ofÂ theÂ remainingÂ mortgage note plus interest, lawyerÂ fees, and penalties. Your agent will be able to guide you to foreclosure property listings on the Multiple Listing Service (MLS) â€” a database to which consumers do not have direct access.
Naturally, these financial establishments only aim to sell foreclosed houses at a price that would help them get back the amount the original owner of the house owes them. Combine this with a soft real estate market and you now have a squeeze on homeowners who are struggling to make the higher payments on adjustable-rate mortgages or are forced to refinance their loans to attempt to lower their payments.
Tax foreclosures are great opportunity for investors looking at purchasing homes at a discount. Bank Foreclosures Sale is a leading online foreclosure listings service that provides information and advice to real estate investors of all skill levels: from beginners to experienced veterans, and everyone in between.