Once the realm of only seasoned real estate investors, the interest in purchasing foreclosed properties has fanned out to a growing number of ordinary home buyers. You will need to get the lender on board when it comes to having your offer to buy the pre-foreclosure property accepted. Brandon Turner, Real Estate Investor and Vice President of Growth at , suggests finding an agent who specializes in foreclosures because the seller usually pays the agent’s commission.
Home inspections on foreclosed properties may be required for certain types of financing; speak with a home mortgage consultant for additional information. Get information on properties being sold as a result of a Foreclosure Process and bid on those properties.
Bank-owned homes are in the thick of foreclosure, meaning the homeowner has stopped making payments. If you’re a potential buyer, you end up buying the property from a bank or a government organization rather than an individual. Investors sometimes prefer to purchase homes that are located near areas where the unemployment rates are low, schools, universities, hospitals and other establishments that make for a prime location for homebuyers.
Instead of being hired by the property owner (e.g., bank, realtor, or investor), a business (Business S) performing foreclosure cleanup services may act as a subcontractor to a business (Business C) that was hired by the property owner. But as the banks could not compromise their loss, they will ceased the homes of those borrowers and sell it in auction to cover up their loan amount.
Banks will often sell these homes at prices below market value to get rid of them. In some cases, you can use the inspection report as a way to negotiate a lower sales price, but only if there aren’t multiple offers willing to pay more for the property. Sellers (i.e., banks or government agencies in the case of foreclosures) prefer working with buyers who they already know can qualify for a mortgage.