Bank owned foreclosure properties for investing thinking of buying bank owned properties but worried about the risk, do you think about how much it could improve your life if you could get started in foreclosure investing. Did you know that with a middle class income and ok credit you are more than qualified in the eyes of most banks to make your first investment purchase?
Due to the large number of bank owned properties many people are realizing the money they can save by buying foreclosed bank owned properties. when a bank foreclosure auction fails to sell a property the banks depend on private investors to buy these properties or they can be stuck with it much longer than they would like.
Buying and reselling foreclosed property generates a profit because it can usually be bought for far less than its market value. When it is resold for market value, the difference, minus expenses, is profit for the investor. Since an investor cannot expect to sell the home for more than its market value, the key to making a profit is acquiring the property so much below its market value that he can make whatever improvements are needed and still resell it for a profit.
The sheer temptation to snatch-up a deal like that is almost unbearable to pass up. The average price on bank owned property for sale is well below market value. There are some properties that have been selling as cheap as thirty to forty percent below market. Another advantage to buying foreclosed homes is that the banks are bent upon getting these foreclosed homes off their books.
The housing market is ripe with pre-foreclosures, the sad fact is many people are over extended and cannot meet their payments anymore. They are desperate to retain as much of their lifestyle as they can, and realizing that no matter what they juggle, they are going to lose their house. Even worse the foreclosure that is bearing down on them like a freight train will destroy their credit rating and prevent them from buying a new home when their financial picture turns around.
Bank owned property acquired this way must be paid for immediately. You will not be able to get financing or a mortgage after the auction is over. If you will need to finance the real estate, then you might consider going directly to the bank itself and get pre approved for a mortgage loan. By making an offer to buy bank owned property to the bank itself, rather than bidding on it at auction, you can get a mortgage right from the bank as part of the deal.
Foreclosures are a rising problem across the nation. In 2006 there were over 283,000 foreclosures filed, as apposed to the 2005 reports of 641,503 you see an increase of over 53% and that is a staggering jump. Adjustable rate mortgages (ARMs) are one of the big culprits in the rising rate of foreclosures. There are over 500 billion dollars worth of sub prime ARMs Scheduled for rate and payment changes in 2007 add the increase in their mortgage payment the rising cost of oil, gas, food, electricity and the recent doubling of credit card payments. And you can quickly see how so many people have become overextended without losing their job.
As you can see there are a lot of people facing hard times and it will not get easier anytime soon, but many of these people will save their credit rating by getting out from under their mortgage debt with the help of pre-foreclosure investors. Do you have any comments about bank owned foreclosure auctions
Author: Steven McCarthyThis author has published 3 articles so far.