Bank Owned Property
One of the ways a house foreclosure ends is by the mortgagee selling the home
and using the proceeds from the sale to pay the mortgage debt. They can sell the
bank owned property even though the proceeds will likely be less than the amount
owed. If they don’t, it could become a bank foreclosure at the end of the
designated time period.
The advantage to the borrower is that they can get out from under the
mortgage without seriously damaging the credit. Here’s where you come into the
picture. If you can make a deal to buy a pre foreclosure home, not only are you
beating your competition, but you are also likely to purchase the foreclosed
property at 20 to 40% below market value!
Pre foreclosure is the first step in the beginning of a troubled mortgage
when the mortgagee is unable to pay the mortgage on time, i.e. default on loan
payments. The first thing that happens is the bank sends a letter to the
borrower which puts them on notice of default. The bank also files a public
Notice of Default, also called a “Lis Pendens”.
Buying a property in pre-foreclosure involves approaching the borrower and
offering to buy the property. The other advantage to a borrower proceeding with
selling you the home during pre foreclosure is that they can get cash for some
of the equity they have in the pre foreclosure home. Don’t worry, you’ll have a
good amount of time to research the title and condition of the pre foreclosure
property to make sure of your offer and cost to acquire, fix up or resell it,
and make money.
So now you see, when you
buy foreclosure homes or pre foreclosure homes, you
have an advantageous position that allows you to make an almost instant profit!
Contact us to get the fastest start in your foreclosure investing.