There are several ways to make a profit on the real estate market. One good way is through buying distressed property from banks.
There are several ways to make a profit on the real estate market. One good way is through buying distressed property from banks. Distressed properties are foreclosed homes or buildings owned by a bank, mortgage lender or government agency. Buying a distressed property can be risky, but it is a fairly simple process once you know what to do.
The first step in buying distressed property from banks is to research your options. Start by scanning local real estate listings of foreclosed homes. These homes are typically called bank-owned homes or real-estate-owned (REO) properties. Banks, mortgage lenders, real estate brokers and government agencies like the U.S. Department of Housing and Urban Development (HUD) all sell distressed properties.
You will need to be aware of certain factors when you buy distressed property from banks. Primarily, these homes are sold as-is. You should have a home of interest professionally inspected before you place a bid or make an offer on it. An inspection report discloses both minor and major issues with the home. It also gives you documentation to backup an reduced-price offer on the home. Although lenders often clear the property title, you also want to do a title search before you buy a distressed property from a bank to make sure it is free of liens.
Buying distressed property from banks can be a very risky process. However, if you educate yourself, you may get a good deal on a new home or investment property. You may want to hire a local real estate agent who specializes in foreclosures to help you find properties and negotiate with banks or other lenders. If you want to connect with agents in your area or get foreclosure listings now, go to RealtyNow.