What Are Bank Owned Foreclosures?

Bank Owned ForeclosuresBank owned foreclosures, also referred to as REO (Real Estate Owned), is foreclosed real estate that is owned by the bank due to an unsuccessful foreclosure auction. There are several reasons the home may have not sold at auction, however the most common reason is negative equity, as the home is worth less than the amount owed to the bank. Of course, the bank seeks to receive the outstanding balance of the original loan; therefore, the minimum bid for the bank owned foreclosure is usually the amount of the outstanding balance of the original loan, plus interest and any additional fees. However, smart investors and buyers will generally not consider paying more than the property is worth.

Nevertheless, an unsuccessful sale will not stop the bank from trying to make an attempt to get the bank owned foreclosure sold. The bank will consider removing some or all liens and fees on the foreclosed real estate in order to get it on the market and resell it to the public. The resell process may be retrying an auction or working through a Realtor to list, market, and the sell the property.

This is a hot market for real estate investors and buyers, especially for foreclosures in Mammoth Lakes. Real estate investors take an eager interest in bank owned properties and foreclosures. The market of foreclosed homes may be large; but, not always suitable for some buyers. Nowadays home buyers and investors alike are scrambling through the market of bank owned foreclosures looking for the best deals. Though, most bank owned foreclosed properties are in less than desirable condition, the low sale price of the home highly compensates for the properties poor condition.

Investing in bank owned foreclosures offers a great return for investors. As an investor you must consider all your options. Make sure you get the bank owned foreclosure at or below fair market value. Hopefully, the bank owned foreclosure that an investor chooses to invest in will give the investor rewards; such as a larger return in profit, either through renting the home out or through selling the home.

There are several ways to search for bank owned foreclosures. You can search the Internet, magazines, and newspaper listings. The Internet also, can lead you to thousands maybe millions of connections. Here you can view listing by state, banks, county, and much more. You should also invest time in finding a good real estate agent. If they know what you are looking for, they can save you a lot of time and work. They can also help you determine the true market value of the home you are considering investing in.

Finding good deals on bank owned foreclosures in the Eastern Sierra and Mammoth Lakes is easy with the right team working for you. Let myself and our knowledgeable team work for in buying your REO property.


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About Deanna

Deanna is an experienced "LOCAL" REO Listing Agent providing foreclosure services in primarily the resort areas of Mammoth Lakes, Crowley Lake, June Lake, Bishop, and Big Pine, CA. Successfully closing over $40 million in REO Real Estate transactions and sales since 2005, Deanna provides professional and prompt REO Real Estate services. Click here to view my Featured Properties.

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