Foreclosure is an unfortunate fact of home ownership for many people today. For many reasons, including loss of a job, divorce or unforeseen medical problems, numerous borrowers find themselves in a situation where they can no longer make the monthly mortgage payments on their home loan. When this happens, the bank has the legal ability to "call" the loan, which means that they can demand payment for the full balance yet owing. This is usually the beginning of the process, and the time when a piece of property will land on a list to get grabbed up as a bargain by investors and those shopping for a new residence.
Bargain or Nightmare?
Some homes that end up on a list really are a true bargain and others can quickly become more trouble than they are worth. Some homeowners in the midst of losing their homes can do damage to the property in their frustration or strip the home of many of its assets before moving out. Since homes on a list are often sold "as is", it can be a case of "buyer beware" in many of these situations. However, other homes that end up on these lists will indeed be quality pieces of property that are being offered below market value. The key is in knowing how to find the diamonds in the rough so that you can seize the opportunity when it arises.
Through the Real Estate Market
Many real estate agents will specialize in selling homes on the list, and if you can discover who those agents are, you may be able to grab up a bargain property. One way to find these agents is by checking out the ‘For Sale’ signs in your target area. If you find some that say "bank owned", "bank repo" or "foreclosure", contact the agent listed on the sign. You can then ask if that agent has any other properties for sale on the list. You can also ask your own real estate agent to pull up the homes on the list for you. These professionals will have access to information on the MLS (Multiple Listing Service) listings that potential buyers do not have, including properties for sale on the list.
Through Lenders
Many lenders will have lists available that include the homes that are currently ‘bank owned’ by their company. These lending institutions might include banks, mortgage companies and government agencies like HUD and Fannie Mae. The Department of Treasury will also keep a list of homes that have been seized by the IRS. Most of these organizations will have website listings of homes to make it easy for you to find the location and price range that you are looking for. The internet is always a good place to begin any search.
By exhausting all of these resources, you are very likely to find a home that you want at a price that is attractive and affordable. lists are the perfect way for new potential homeowners, or those simply looking for a bargain, to find their next house or their new dream house.
