If a homeowner is unable to meet payments on a bank-held mortgage loan, the bank will attempt to repossess the property by foreclosing. These properties are known as either bank foreclosure homes or real estate owned foreclosures (REO). Real estate investors will often look for these types of homes as they are being sold to prevent the property from reaching foreclosures during a pre-foreclosure period.
Where to begin your search
Foreclosure homes are different from other types of real estate. The process of purchasing a pre-foreclosure can be more difficult, as there are typically more challenges in the process. It can also be challenging to find bank foreclosure homes or to even find the necessary information about those listings. As you begin your search, consider these four useful resources below.
Real estate agents
Real estate agents have access to Multiple Listing Service (MLS), which provides them with valuable information about foreclosure properties. With this, be sure to speak with buyer agents to search for bank foreclosure homes. These agents will typically know more about the properties in a region before the average consumer finds them.
Real estate signs
At times, you may even stumble upon a foreclosure property as you are driving through a neighborhood. Consider pursuing more information from signs that read phrases such as “Foreclosure” or “Bank-Owned.” If the property interests you, contact the agent about the home and inquire about other listings that will soon hit the market.
Bank websites
Many major banks feature online lists of foreclosure properties on their websites. However, this does not mean that all banks will sell their REO properties to individual buyers. In many scenarios, homes are packaged together and sold to real estate investors.
Online foreclosure companies
Another resource to consider is web-based foreclosure companies that can provide you with a list of REO’s. For a small fee, you can avoid spending the time, energy, and resources to locate foreclosure properties.
