If the lender takes ownership of the property, either through an agreement with the owner during pre-foreclosure or at the public auction, the lender will usually want to re-sell the property to recover the unpaid loan amount. If you're a real estate investor or homebuyer looking to purchase a bank-owned property, use the checklist below to help you through the process.
Make sure that you have the resources in place to purchase this property. This includes securing pre-qualification for a loan and enlisting the help of a buyer's agent if you're not comfortable contacting the owner and navigating the negotiations and closing process on your own.
Determine if this property represents a good bargain or investment opportunity. Start by subtracting the estimated amount owed from the property's estimated market value to determine the property's estimated equity.
Unless this property is listed for sale on the MLS (in which case you can contact the listing agent), you'll need to contact the foreclosing lender directly to express your interest in the property. Ask for the REO or asset management department when you contact the lender.
The lender's REO or asset management department will let you know how you can view the inside of the property and how to submit an offer for the property. If your offer is accepted, both sides simply need to satisfy the terms of the purchase agreement to close the deal. Contact an agent to help with negotiating and closing.
If a lender takes ownership of a property, either through an agreement with the owner during pre-foreclosure or at public auction, the lender will usually want to re-sell the property to recover the unpaid loan amount. Check out the tips below to find out ...