| What is a Bank Foreclosure? | | | | available foreclosed properties, that is updated on a |
| When someone purchases a home with a bank loan, | | | | daily basis. Often the information they provide is; the |
| the bank uses the home as collateral for the loan. So if | | | | price, some features or selling points to the property |
| the buyer is unable to make the monthly payment, the | | | | and the amount of yearly taxes if available. These |
| property reverts back to the bank. The bank does not | | | | services are offered for a small monthly membership |
| want to keep the property because they are in the | | | | fee, and usually have a free 7 day trial offer so you |
| business of lending money. The property is a liability to | | | | can try it out with no risk. If you are not satisfied you |
| them because it is an outstanding debt. Therefore they | | | | can always cancel before the 7 days are up. |
| need to find another buyer for the property. This is | | | | This is a great opportunity for those looking to buy |
| where foreclosure listings come in. The property can | | | | bargain priced homes. These homes have been |
| be advertized for sale at a lower price to entice | | | | reduced in price for fast sale, and may be in need of a |
| people to buy. | | | | little fixing up that will increase the homes value if the |
| What are foreclosure listings? | | | | buyer decides to resell it in the future. Many people |
| Foreclosure listings are a list of available properties that | | | | looking to get started in the real estate business, start |
| have been foreclosed, or taken back by the bank. | | | | out buying foreclosed homes. |
| They need to be resold to clear the banks accounting | | | | Benefits of buying a foreclosed property? |
| balance. So many times the banks will put these | | | | The benefits to the buyer are buying a property that is |
| properties on a list so prospective buyers will see | | | | priced below market value, and will not be tied up with |
| them. | | | | liens from other parties. The title will be free and clear |
| A Foreclosure Listing Service offers a listing of | | | | to the buyer. |