A few weeks ago RealtyTrac released it's annual U.S. Foreclosure Market Report. Bank repossessions were up 38% compared to the year before. Darren Blomquist, vice president of Realtytrac, said that right now we are experiencing
"the biggest bank-owned pricing discount since 2006."
"the biggest bank-owned pricing discount since
2006."
"the biggest bank-owned pricing discount since
2006."
If you're thinking about capitalizing on this trend, here are the 5 steps to buying a bank-owned property:
Step 1: Review the new bank-owned properties hitting the market each day. You can do this online from your computer.
Fannie Mae Foreclosures, VA Foreclosures, HUD Properties, auction sites, Zillow, and MLS/Realtor.com are solid sources of discounted bank-owned houses.
Step 2: Identify 3-4 properties near you that you're interested in.
Step 3: Drive out and look at the properties in person.
Step 4: Run the numbers and figure out what you're willing to offer on a property.
Step 5: Once the bank accepts your offer, order
an inspection and set up lending if you're using hard
money or private money to do the deal.
Here are two important things to remember about bank-owned houses:
- It's OK to make an offer that is significantly below asking price. Banks often use the same listing
agent to handle dozens of properties. It's not unusual to discover that neither theagent nor the bank know anything about a property.
Also, banks are paying carrying costs on their houses (e.g. insurance, taxes, maintenance). They
are anxious to move properties off their books, even if it means giving you a big discount.
