Do you think the rising cost of the real estate market has pushed you from it; you better take a look again. If you’re a first time home buyer, then consider bank owned homes for your initial home purchase.
If people are willing to do some homework and research, they’ll find that bank owned foreclosures, along with other foreclosed homes have a tendency to be the best opportunities in the real estate market right now.
Both financial and real estate experts have noted a tremendous increase in the number of foreclosed listings available. This is the best time to get your resources sorted out and get educated about this hidden market.
It’s not unheard of to save nearly 50 percent of a foreclosed homes market value and some foreclosures for sale can give prospective buyers 60 percent or more in savings.
Due to the subprime mortgage crisis, there are some real bargains to be had in the real estate market. All you have to do is know where to find them.
There are several web-based services that can assist consumers by giving them information on foreclosures and pre-foreclosure homes that was once only given to investors and professional real estate brokers.
Many home buyers today are using these services to both recognize and research prospective home acquisitions along with finding both the professional resources and tool that will assist them in closing the deal. There are currently more than 600,000 bank owned foreclosures on the market.
You also want to be educated and investigate the market.
If you do your homework you will find tons of lenders who have experience with funding for bank owned foreclosures. Look for great rates, the ability to submit applications online and the eagerness to lend on foreclosured homes for sale.
Do you want a bank owed foreclosure? Here are some of our hot foreclosure tips that will help you close on your first bank owned home:
Find Out About The Different Kinds of Properties and Foreclosure Process
You should know right now that all foreclosures are going to be different. Thus, you should educate yourself on the basic three kinds of properties and their differences.
You should also learn both the negative and positive aspects of purchasing a home at every phase of the foreclosure cycle. A good thing to remember is that most of your savings is seen at the pre-foreclosure phase of the buying process.
This is when homeowners can stave off a foreclosure and lenders save time and money getting involved in the process. Another important point is right before the auction date when parties are willing to work together to resolve the issue.
Secure Your Financing Early On
Before you go making offers on homes, it’s important that you become pre-qualified; this tells the seller you’re serious about buying a home and gives you some power over the negotiations.
Get In Touch With A Buyer’s Real Estate Agent
You should know right now that there are differences between a seller’s real estate agent and a buyer’s real estate agent. How so?
A buyer’s real estate looks out for the interest of the buyer and must help them find the property best for them and negotiate the price that their clients can live with. You should research the different real estate agents available and find the one right for you. If you’re looking at bank owned foreclosure homes, make sure to find an agent that’s got experience in that field.
Do Some Research
It’s a bit more risky buying bank owned homes than conventional real estate properties. With the risk comes a reward of higher possible savings. By doing some research and with some persistence, you can reduce these risks.
Remember, as with any type of purchase, timing is a whole lot. Always do a thorough examination of any home you’re going to place an offer to buy on.
You want to know its condition and value. Learn how much money the property is in default along with the remaining loan balance.
Run a legal investing report to ensure the house is free of financial problems. To make it even better, you can also foster a relationship with the seller at the same time.
Make A Real Offer
As a buyer, you should be taken seriously. Thus, when you prepare your offer, you need to be real about it. Lenders won’t give away property in a market where the prices are going to rise.
Homeowners who are suffering financially are particularly hard to deal with, especially when the foreclosure process is in the early stages.
If you become educated about the real estate market and learn about the foreclosure home you want to buy, you can devise an offer that’s very real, still give you the savings you want and meet lender requirements.
All in all, if you’re reasonable, persistent, have done your research and work with a knowledgeable lender then bank owned homes can become your road to real wealth.
There’s no reason to pay full price on your home. Instead, look to get your home for half the price or less and sign up with one of the top online foreclosure companies. Bear in mind that there are many bank owned foreclosures on the market and more coming every month.