How to Land a Good Deal With Bank Foreclosures

Are you running out of options when it comes to buying affordable, good quality homes? Here is good news: Buying a foreclosed property or house can be your best bet when it comes to landing a good home for your new family. The increase in the number of homes that have been foreclosed by banks or the government can benefit you in a great way because you now have more opportunities to buy budget-friendly homes.

If you decide to buy such properties, your local bank may be a good place to start. Here you can find regularly updated lists of Real Estate-Owned (REO) homes for sale. There are however, several easy steps to make your bank purchase go as smoothly as possible.

Steps to Buy REO Homes from Banks

REO Homes

1. Always come prepared. This means that you need to have an updated list of bank-foreclosed homes, and to get this, you have to visit the bank of your choice and check out its message or announcement boards. You can approach a bank representative to get a printed copy of its lists.

2. Do your research. It is not advisable to go purchase something without studying the logistics of the places or areas where these houses for sale are located. Make sure that the house that you intend to buy is situated in a safe and acceptable location. Remember that you and the well-being of your family should be your priority.

3. Conduct a scheduled home inspection. Of course, where the homes are located are important. However, checking out the condition of the home also holds an equal value. Would you want to buy, or worse, live in a dilapidated home? You have to check if there are areas in the house that need major repairs or if dirt, insects and time have eaten the house away. Choose a house that requires less renovation or repair, which will help you save money in the end.

4. Discuss with your REO-accredited real estate agent about the possible prices and the bid that you may post for the property of your choice. Asking help from an expert can help you land on a good price deal and at the same time, you would be able to know the strategies on how to properly make the bids and finalizing the purchase.

5. The bank often requires you to fax your letter of intent and of course the bid that you wish to make for the house. Address your fax to the bank’s REO section and then its people would carefully study your offer and your credentials – to confirm your intentions and your ability to pay for the house. The bank representative may confirm or reject your bid, or he or she may also negotiate with you or your agent.

6. Once your bid has been approved, then the house is all yours.

These easy steps about where to find foreclosed homes for sale through your local bank can increase your opportunities to find good quality homes for a fraction of the price of brand new homes in the market.

To read more about buying foreclosed homes please visit:
Foreclosure Listings Canada