| Banks have become major resellers of homes that | | | | simpler way. The trick is to find a broker that |
| they have repossessed after the owners fail to | | | | specializes in bank owned foreclosed homes. The |
| meet their mortgage obligations. In the housing | | | | area's local realtor's board would have this |
| market bank owned foreclosed homes are also | | | | information. The first thing you want to have is a list |
| known as Real Estate Owned properties. These | | | | of homes that would require a lot of repairs or |
| homes are subjected to foreclosure and is sold in a | | | | renovation as these are the ones where you will get |
| court administered auction, if they do not sell in these | | | | great discounts. |
| auctions, they revert to the bank and form part of | | | | Banks usually favor the very first buyer to make an |
| its assets. As owning houses is not really in line with | | | | offer, they may make a counter-offer, which you |
| the bank's operations, they put these houses up for | | | | may still counter until they agree. Once they have |
| sale. | | | | locked on you they are obliged to sell you the home. |
| How to Make Your Approach | | | | Good thing about banks is that after the initial |
| There are various ways of approaching a bank to | | | | haggling, the rest is quite easy. They will deal with |
| purchase a home. If you are already in the business | | | | you even if a higher offer comes along. |
| and have overflowing liquid assets running in the | | | | If you have a relationship with a certain bank then |
| millions, you may just find an attractively marked | | | | realtors can be left out of the negotiations. Bank |
| down cluster of bank owned foreclosed homes. | | | | representatives can let you in on some of the |
| These deals usually go through bank-appointed real | | | | houses they have for sale and present you to the |
| estate brokers and sometimes the terms and | | | | officer in charge of bank owned foreclosed homes |
| conditions get confused and convoluted. Then again, | | | | as a potential buyer. Banks will want to work with |
| as you're already in the business, you would have | | | | someone they already have a history with, a valued |
| some working knowledge of how to close these | | | | depositor or a very good loan payer. With a little |
| deals. | | | | initiative and persistence you can get the best deal |
| Smaller investors or first-time purchasers would | | | | for your new home either from a broker or directly |
| mostly still deal with the brokers but in a much | | | | from your neighborhood bank. |