When trying to purchase a new home or property, most people enjoy squeezing extra value out of their dollars by seeking to buy a distressed property or house at a discount. This saving concept generally means they’re looking for a property that’s foreclosed by the bank due to financial issues by the owner. These properties often come at a good discount, and a good deal for home seekers, however, there are specific ways these properties can be located.
It is better to learn a little bit about how properties or homes end up becoming bank-owned properties, before embarking on a purchase deal. This knowledge will give you enough prep ground to get the best property deal.
What are bank-owned properties?
Bank owned properties are also known as real estate owned properties. They are designations given to properties or homes that weren’t sold during a foreclosure sale, and thus added to the inventory of the bank’s foreclosures. Bank owned properties are known to possess low-interest rates and mostly provide an opportunity for low down payments. However, bank-owned properties are quite complicated to close and takes a longer time than conventional real estate properties.
Understanding bank-owned properties
As explained earlier, bank-owned properties are also known as real estate owned properties. They are properties taken into a bank’s inventory when a sale isn’t achieved during the foreclosure process. And these properties are only acquired by a bank or financial institution when property or homeowner defaults on their mortgage. These acquired properties are then sold by the bank to regain the defaulted payment at a lower price. This low price is as a result of buyer’s wariness of the costs of potential upgrades, repairs and cosmetics that might be needed. These properties can be adequately referred to as bank-owned properties when the subsequent foreclosure auction yields no buyer.
When a property owner borrows money and fails to uphold his or her mortgage obligations, the property in question is transferred back to the lender. The lender can be a credit union, bank, national lending agency, or any other financial institution offering loan services such as mortgages. Generally, this process of transfer begins by following the lender’s policy for transitioning into foreclosure.
Some lenders may have a grace period for missed payments, while some don’t. Every lender has their particular grace period and policies surrounding their mortgage lending, which when fully defaulted can lead to auctioning of the property. When such property then fails to sell at a foreclosure auction, it is then transferred and listed in the bank’s inventory.
Mostly, when a property is transferred to a bank, the bank carries out diligence to clear the title. It is therefore advisable that buyers and investors should verify that the title is cleared before proceeding with any financial payments and upgrade or management of the property. Investors and wholesalers, often make cosmetic and structural upgrades and repairs to these properties before relisting for sale.
As an investor interested in bank-owned properties, it is noteworthy that proceedings often take longer than conventional real estate transactions. Mostly, the transaction timeframe is extended and closing the deal can be longer. The bank wants to make sure the transaction is secure, as well as to minimize losses and maximize profit. Get the best bank-owned properties in Florida here for your investment goals now!
Where to Find Properties Owned by the Bank Owned
There are many places to find bank-owned properties in today’s real estate market. One of the best places is on a Multiple Listing Service (MLS), or to contact a buyer’s agent. However, the most guaranteed way of finding the right bank-owned properties is contacting a real estate investment company with hands-on experience.
InvestWay group is the best and the most prominent Real estate investment company in Florida. This rating is due to the number of successful deals, and the number of investment partners worked with, in the Florida market. If you need to understand bank-owned properties better, or get one for investment purpose, look no further than Investway Group. Request for the most profitable bank-owned properties in Florida now!