A lot of people have asked me about Foreclosures and Bank Owned properties. In a nutshell, and from my experience, for the investor, it is best to pursue the homes that are already in the possession of the bank. However, if you are looking to find a particular home in that special neighborhood you have had your eye on, it is best to look at the best homes available regardless of the fact that they may or may not be bank owned. Owners of these homes want to sell and are very aware of the market conditions, so in all likelyhood they have taken this into consideration as they priced the home. Another common scenario is the “Short Sale”, this can often work out well for the seller (releases them from the bank) and the buyer as they are able to get the particular home they want. The only thing to keep in mind regarding a short sale is that the banks often take 60 days or more to review a contract, unless it is a “pre-approved short sale”. So be sure this is truly the home you want and that you are ready to wait. Also keep this in mind, and much to my amazement, the banks want as close to fair market value as possible. I currently have a list of my “top ten” bank owned properties, so contact me if you would like some information on them.
