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Bank Owned Foreclosure?

How do I go about buying a house in foreclosure/bank owned? Will banks finance properties in foreclosure? Do you think foreclosures are a good investment?

Public Comments

  1. The bank would, of course, be a good start. Foreclosures can be, if the price is right.
  2. Foreclosures can be a good investment if there are no liens on the property that you are unaware of. Get an inspection and an appraisal to get a sense of the condition and worth of the property. Banks will lend on foreclosed properties if everything is in order. Buy title insurance.
  3. Best way is to get a realator and ask for listing of short sale houses. Short sales the bank will take offers well below the house value. You can pick-up a house for half the going price.
  4. They are called REO's, real estate owned. Banks want to get these off their books because banks are in the business of making loans and collecting interest or collecting fees and selling them to Fannie Mae Freddie Mac. These REO's are just sitting on their balance sheets, just call one of the many banks and try to contact a REO rep. Foreclosures are a great investment, if you could get a loan these days go for it these rates are low. If you are trying to flip it, stay away, flipping will not be back for many years due to so many houses on the market. If you want to buy and hold for the long haul 15-30 years and as a primary residence this is the best time to do so. Good Luck.
  5. Foreclosures are usually good investments. Bank owned foreclosure is not a good investment. You have to do your home work with each deal. NO DEAL CAN BE DONE WITHOUT MONEY. That statement means, if you buy a property, you may have expenses that are not predictable. So funds need to be available to cover the expenses.
  6. Finally a question in my wheel house. REO or Real Estate Owned by the Bank is not a good investment. The fact is that banks are not stupid. You can't just walk into the bank and ask them for a list of their foreclosures. Although banks are not in the real estate business they aren't going to let their bottom line get absolutely destroyed by simply giving these houses away. Banks will always hire a realtor and attempt to get retail for the property, which in most cases they will get pretty close to most of the time. When investing in foreclosure the best way to do it is to get a list of people who are in preforeclosure or whose property is going up for sheriff sale (in Pennsylvania). Once you have this list you have to get in contact with the owner and ask their permission to go to the bank and speak on their behalf. It is here where you are able to get very good deals on homes. You will then go and negotiate the price with the bank. Once you reach an agreement with the bank there are then many exit strategies you can follow. You can quick flip the house by assigning or wholesaling the contract to another investor. Or you can do all the rehab and repair work youself and rent it out for a monthly cash flow. So when dealing with foreclosures do not wait for the bank to take control of the property, you have to get to the current occupants and that is where the real profits and fun begins.
  7. Yes, banks will finance properties in foreclosure. However, they usually will NOT look at any offers that have any contingencies (i.e. contingent on sale of your existing home, contingent on inspection, contingent on obtaining financing, etc.), so foreclosures are not an option for everybody. Banks are very slow at responding to offers - sometimes even more than a month before responding to your offer, so if you're trying to sell your existing home it's hard to get the timing right. (For example, if you sell your existing home and the bank does not accept your purchase offer, you're left w/out a home! Or, the bank accepts your offer and it takes longer to sell your house than you plan for and you're stuck w/ two mortgages.) Foreclosures are probably best for first-time homebuyers who don't need to coordinate the sale of an existing home, or for homebuyers who can easily qualify for (and afford to carry) mortgages on both an existing home and the new home.
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  9. Here is a good list of sites that you can use for finding Bank Owned Foreclosures (REO) http://www.realestateloop.net/reo.html Foreclosures are good investments if the equity is still there. But the hardest part today is obtaining the financing for the property. There is always the subject 2 method!
  10. Yes, you can buy Cheap Property in these bank Foreclosures. Try here.
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