Bank Foreclosures and Distressed Sales
If you're in the market to get a "good deal" then you need to consider foreclosures. Property foreclosures are at record levels across the United States. Countless distressed property owners face imminent default as they struggle to cope with overextended mortgages, languishing sales, and changing market conditions. NOW is a market primed for would-be investors and entrepreneurs looking for big gains from honest and ethical foreclosure investing. Even as a first time home buyer or a trade up buyer, investing in bank foreclosures is a smart idea!
REO (bank-owned) and SHORT SALE listings offer buyers an opportunity to buy a home under market value. Bear in mind, however, that not every REO listing nor short sale listing is a great deal. In some ways, they aren't any different from any other type of listing. Buyers will find a variety: some REOs and short sales are priced too high, some too low and some are just right.
To give you an idea of how it all works, banks own real estate because the banks have acquired the homes through foreclosure. Homes on a bank's books are called REOs, realize that when banks receive property deeds to homes through foreclosure, it's because no one showed up on the courthouse steps to bid the minimum amount of the existing mortgage(s).
On the surface, it might not sound as though foreclosures are profitable, especially if the bank wants to sell its inventory on the open market for the amount that was once owed to the bank by the previous mortgagor. However, here are at least two reasons why an REO's can be profitable to you:
- If two loans were secured to the property (which is common these days), the second lender sometimes does not foreclose. If the second lender does not make up the back payments to the first lender and commence its own foreclosure proceedings, the second lender gets wiped out in the foreclosure. Many second mortgages comprise 20% or more of original market value.
- The bank does not want to sit on its inventory. Since it did not receive its minimum bid from an investor or home buyer during the foreclosure sale at the courthouse, the bank is likely to price that REO home for less, just to get rid of it. In my recent experience with REO properties, the banks have been entertaining lower than market value offers due to the overwhelming amount of foreclosures nationwide.
A short sale in real estate is not always a pleasant transaction. There are many ways to lose a home. Signing away ownership destroys credit, embarrasses the family and strips an owner of dignity. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale."
When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.
If you are considering buying a short sale, there could be drawbacks. For your protection, I suggest that all borrowers:
- Obtain legal advice from a competent real estate lawyer
- Call an accountant to discuss short sale tax ramifications
As a real estate agent, I am not licensed as a lawyer nor a CPA and cannot advise on those consequences. However, I can assist you in the actual purchase of the home.
If you are the type of person who is interested in purchasing a Bank Foreclosure, then you need to take advantage of the FREE Service I provide to home buyers. I have been selling REO properties for over 10 years and have represented several buyers in retaining excellent deals in purchasing foreclosures. Being a REO specialist, I have access to homes before the average real estate agent. I work with several banks who recently have taken an overwhelming amount of homes back nation wide.
To receive a list of Bank or Government owned homes in the Casper Area, then simply complete the information below and we'll email you that list right away. Then, we'll continue to update you as these homes come on the market. Some homes are listed with real estate agents, some are not. This information is usually not readily disclosed. This list is compliled manually and will require manual updates. We spend a lot of time watching the market on all the new foreclosures that come up for sale and will make sure you receive the updates quickly!
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