|
For novice home buyers and investors, buying bank owned properties (REOs) from the lender is the safest way to buy.
There's no risk. There are no taxes, no liens to worry about and no tenants to evict. Buying an REO is the most popular
method of buying homes in foreclosure.
Find Bank Owned Properties Here...
Bank Owned Properties are the least cumbersome, safest way to buy ...not to mention, lending institutions with a list of
REOs are motivated sellers.
Benefits of buying bank owned properties:
- Save up to 20% off home market values
- The bank or lender is a motivated seller
- Easiest way for beginners and experienced investors to buy properties
- Interested buyers have instant access to properties for inspections
- No back taxes or liens to worry about - No tenants to evict
- Redemption period for original foreclosed owner is over
- Price negotiable around rehab costs, interest, closing points, loan amount, etc.
- 99.99% risk-free - bank always provides good, clear title
- Lower than usual downpayment & below market rates possible
...here are some deals a lender may offer on
bank owned properties.
Bank Owned Properties Have Motivated Sellers
If a foreclosed home or property does not bring enough proceeds from an auction sale to satisfy debts on a
defaulted loan, it is taken back by the lender and becomes an REO (real estate owned), or bank owned property.
From a lender's point of view, bank owned properties are non-performing assets that do not generate income.
And since a bank is in the money business (not the real estate business), it wants to sell these properties as fast
as possible. There are also multiple federal agencies monitoring the performance of lending institutions, making
sure non-performing assets (bank owned properties) are kept to a minimum and that banks remain profitable and
solvent.
Bad investments create non-performing assets and since bank stocks are traded, there are shareholders that
the management of a bank is accountable to. A bad balance sheet, or an indication of financial mis-management, can
cause tremendous hardships for a bank, especially if shareholders decide to take action. This is yet one more reason
why lenders are motivated to sell bank owned properties quickly.
REO Properties Cost A Bank Money
Once a bank has foreclosed and takes possession of a property, it has entered into a dual loss situation. The double
loss results from a lack of income from the property (loan interest), as well as other expenses incurred while holding
it. Property taxes must be paid and a home has to be maintained so that it does not fall into disrepair.
Maintenance and upkeep can be costly for a bank, especially if properties are outside the bank's normal
business area. In such case, a bank will most likely contract with an out-of-town management or maintenance company
to provide landscaping, snow removal, or other services. Banks with larger inventories of REOs often have entire
departments dedicated to management and sale of these properties. This can get very expensive for a
bank...thus the lender is definitely a motivated seller.
Buying Bank Owned Properties Is Easy!
Todd Beitler has put together a simple, step-by-step plan that anyone can understand and use to save thousands on their
next home or property purchase. Join the many who have saved (and made) money buying bank owned foreclosure
properties.
For complete information on how to purchase Real Estate Owned Properties, pick up a copy of the # 1 eBook Guide,
"How To Buy Foreclosures"
Affordable, this downloadable ebook is packed with facts on everything you need to know
for making the most money from bank owned property & foreclosures.
|
