How banks work


Roles Real Estate Agents Play in Bank Foreclosure Real Estate

When it comes to real estate properties for
investment, nothing else can offer muchOnce the foreclosure proceeding is completed
return potential as bank foreclosure realwith the owner not being able to cure default
estate. These potential are not only forduring the pre-foreclosure stage, the bank
buyers but also for individuals considering awill have to file a "Notice of Foreclosure".
career as real estate agents. To become anA foreclosure sale is usually set a week
agent, you will need to pass a real estateafter the notice has been filed. In a
licensing exam before you began selling anyforeclosure sale, you will see interested
property, even bank foreclosure real estatebuyers: banks to whom mortgage is owed,
properties.private investors and of course real estate
brokers and agents. All of these people are
Bank foreclosure real estate featuresthere to bid for bank foreclosure real
properties re-possessed by the banks fromestate. The highest bidder naturally wins the
owners due to default in mortgage payment.auction.
Before a real estate property is considered
to be foreclosed, it passes a legalSome bank foreclosure real estate property
foreclosure proceeding. The moment a singlesurvives a foreclosure auction and becomes
payment is missed, the bank will try tothe possession of the bank that holds the
contact the owner to know the reason for suchlien. These bank foreclosure real estate
delays. If the owner did not communicateproperties are no called real estate owned or
effectively with the bank, then the bank hasREO. When the bank's inventory of REOs or
no choice but to file for a "Notice ofbank foreclosure real estate properties
Default". Depending on the state, the ownerbecome too big, it will decide to enter into
will have an average of 30 days to cureforeclosure listings contract with reputable
mortgage  default.real estate brokers. These brokers will
assign real estate agents to handle these
The re-instatement period is also known asbank  foreclosure  real  estate  properties.
the pre-foreclosure stage. Since foreclosure
proceeding has not been completed, theFrom this stage onwards, real estate agents
property is still in possession of the owner.will play a major role until the bank
The owner, in this situation, could choose toforeclosure real estate property is sold and
sell the property. A pre-foreclosure sale iscommission is collected. If you noticed, in
usually a direct transaction between theall stages of foreclosure, real estate agents
owner and the buyer. In cases where theare presented with an opportunity to earn. So
property was listed, a real estate agent willdo not be surprised that more and more people
be the one dealing with the buyer in behalfare deciding to shift careers and become real
of  the  owner.estate agents.



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