Bank Foreclosure

Unfortunately, Bank Foreclosure occurs more often than ever before. This has created a glut of available properties which present countless opportunities for those pursuing real estate foreclosures.

The length of the foreclosure process varies from state to state. However, all begin with a demand for the property owner to catch up mortgage payments. If property owners do not catch up the payments, a demand for the entire mortgage balance is sent to the owner. What happens next depends on each states foreclosure process. But in the final step a date is set for the foreclosure sale, followed by the actual sale of the property. In my State, this occurs on the courthouse steps in the county of the foreclosed home.

If the homeowner cannot pay the entire mortgage balance by the day of the foreclosure sale, the property is lost to foreclosure.

Once a property has gone through the foreclosure sale and is secured by the bank, it is designated as Real Estate Owned (or REO) by the bank.

These properties are then sold directly to interested parties or assigned to Realtors or a combination of both for liquidation.

Contact banks and other lending institutions and request their REO list. If they do not deal direct with potential buyers, (something becoming less and less common) they will refer you to the real estate agent who is handling their REOs.

It is important that you come prepared, whether dealing directly with the bank's REO department or their designated real estate agent. Follow the lessons within this website to prepare yourself.

You will get a step-by-step lesson on everything required for this preparation.

In summary, become pre-approved for financing, make solid no nonsense offers and close quickly.

Once you get a reputation for quickly closing properties, either the bank foreclosure department (REO Department) or real estate agent will contact you with really super deals which must close quickly. This will happen more frequently than you can imagine. So take care of business when dealing with these professionals and you will be duly rewarded.

Real estate foreclosure is a necessary but unpleasant matter for them and they want it handled professionally.


From Bank Foreclosure back to Foreclosed Homes and Other Property Sources.