| When you apply for a loan form the bank, you are | | | | as an additional asset, especially when the property is |
| required to put up a pledge for security for the loan. | | | | in a prime district. |
| This is most likely a real estate property whose | | | | Real estate agents and agencies also gain profits |
| market value is enough to compensate for the amount | | | | from buying and selling properties foreclosed by banks. |
| of the loan, in the event that you fail to pay back the | | | | By buying an undervalued property and then reselling it |
| loan within its term. | | | | at its appraised value, vis-à-vis current market |
| When a bank seizes a property, it sends out a notice | | | | values, an agent can earn thousands of dollars in |
| to the owner. This notice of foreclosure warns or | | | | profits. |
| informs the owner that his house or business property | | | | If you want to try your hand at this business, visit your |
| will be put up for a public auction at the end of ninety | | | | local bank and have someone explain to you how |
| days, after which, the property will become real-estate | | | | buying a foreclosed property works. You may need to |
| owned. It will be assigned a value and will be listed in a | | | | know about deed of trust foreclosure, power of sale |
| publicly-available foreclosures list. | | | | or judicial foreclosure. But you need not be an expert |
| The property may be appraised at a much lower price | | | | at real estate laws. There many people, some are |
| than its current market value. The bank may also bid | | | | housewives and once-a-week agents who have |
| for the property. If it wins, it will have total ownership of | | | | earned a lot from making the buying and selling of |
| the property and may do anything with it. It can either | | | | foreclosed properties a hobby. |
| resell it at a higher price or rent it out. It can also keep it | | | | |