Bank Owned Homes – Find Bank Owned Homes for Sale in Your Area

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About Bank Owned Homes (REO Properties) – Learn More Before You Buy

A bank-owned home or real estate owned (REO) home is a home that has been foreclosed on be the mortgage lender. When you purchase a bank-owned property, you go directly through the bank, so you won’t have to deal with any homeowners. Once the mortgage lender or bank owns the property, they can evict the current residents, pay off any necessary tax liens, and make any necessary repairs.

In today’s market, buying a home can be pretty expensive—especially when you add in extra costs and potential upgrades or home repairs—so if you are looking to purchase a home, but don’t have a lot of money to spend, a bank-owned home could be a good option. Bank-owned properties make great investments for first-time home buyers or anyone looking for new business opportunities.

Advantages of Buying a Bank-Owned Home

Bank-owned homes give real estate investors and homebuyers opportunities that are not available in the pre-foreclosure and auction phase of the foreclosure process.

Some other advantages of buying bank-owned homes include:

• Bank-owned properties are typically cheaper than newer homes and often offer great terms like low down payments and low interest rates.
• Buying bank-owned homes can involve less risk and less competition than traditional markets.
• Bank-owned properties are typically clear of any liens against the property.
• The bank that owns the foreclosed property is usually the mortgage lender, so it might be easier to negotiate closing costs.
• Bank owned properties are typically vacant, which can save you from having to evict its current residents.

For more information on bank owned homes, check out our article on how to shop for bank-owned properties.

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Sources:

Investopedia: http://www.investopedia.com/terms/f/foreclosure.asp

Investopedia: http://www.investopedia.com/terms/t/taxlien.asp