Tamara Bodrick: Hi! I am Tamara with Wells Fargo and Company. Most of us know that there are foreclosed homes available on the market today. You can contact a bank or financial institution directly and find out what homes are available. Your reasons for purchasing a bank managed home are as unique as you are.
But most people do it for the potential savings. A foreclose property also known as a real estate own REO or bank owned property is a home that was ones customer owned but is now owned by the mortgage holder. REO property is generally acquired as a result of a foreclosure action on a mortgage or if the property was voluntarily turned back to the lender. The investor becomes the legal property owner and offers it for sale to recover the amount owe to it. A foreclosure can occur when mortgage payments are not made over a period of time and efforts to resolve the default are unsuccessful. While there are many options available now to help people stay in their homes sometimes foreclosure becomes the only option. In most cases you can take ownership of a foreclosed property in a few months and can often save on the purchase price. The home appraisal inspection and financial process are similar to buying a traditional home. Title and county deed recording issues could potentially delay your purchase. Banks work with local real estate professionals to set fair market value that reflects the local market and property condition. The condition of the home has a major role in determining the price you will pay. Properties range in condition from fully distress to move in ready. A distressed home maybe sold at a slight discount if it is sold as it is with no repairs.
Move-in ready homes are typically priced at market value. A local neighborhood benefits when foreclose homes are sold, maintained, and occupied. So it can be a way for you to get a very good price and support the community at the same time.