Bank Foreclosures

Written by Linda Alexander
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Buying bank foreclosures is a popular way to invest in real estate. Once the lender has bought a property at auction, it wipes out any other liens or judgments on the property. The lender will also pay the balance of outstanding property taxes in order to get clear title. Then the lender usually adds these costs to the asking price.

Lenders are in the business of making money and want to sell their bank foreclosures. However, contrary to popular belief they are not anxious to give them away. Why would they go through he time and expense of foreclosing if they are not going to earn a profit? Many banks do sell homes at market value so the notion that they are practically giving them away is a myth.

Finding Bank Foreclosures

Some lenders openly market their properties. Others practically hide them. Most work with well-known real estate companies, which often have investors lined up waiting for the right deal to come along. You can check newspaper listings, or work with a real estate agent who specializes in foreclosures.

Buying bank foreclosures is a relatively easy way to buy, with fewer headaches than other methods. There are no tenants to evict or judgments to deal with. Since the property has already changed hands from the owner to the lender, all the legwork has been done for you. Since the legal work is done, many of the complications and risks associated with buying are removed.

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