3 thoughts on “How do you buy a foreclosure that is bank owned??”

  1. You can just go to the bank that holda the foreclosure and talk with the loan officer and see about purchasing the home. Yhe bank is just looking for someone to buy it so that they can recoop the money they lost when the previous owners failed to make thier payments.Yes the bank holds insurance on all home mortgages and don’t really lose money on them but they’re not in the business of hanging onto this houses. You should be able to get the house for a steal, you normally can when it’s in foreclosure. They should’nt care that your funds come from a loan, they may want you to switch it over to their bank if it isn’t already. You might even get a better rate.

  2. If the foreclosed home has already been sold at Court House steps then it’s likely to be sent to a realtor who’ll eventually list it. You’ll need to be preapproved for a loan then you can ask the REALTOR to write the offer for based on what you’re approved for.

  3. Lets clarify a few things.

    1. A foreclosure happens when the borrower is in default of the loan agreement. Normally by not making the payments on time.

    2. After the auction and when the property was not sold to someone else the lender takes the property back. They are now the owner. The foreclosure is over. The loan is retired or otherwise ended.

    The property is generally referred to as an REO property. Real Estate Owned by the lender.

    3. Most lenders who have REO property will list the property with a local agent. They will entertain offers presented. You will generally have time to arrange a loan, conduct an inspection and other details.

    I have purchased a number of REO property in a couple of states. Some tips are below.

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