Home » Real Estate

Bank Foreclosed Homes- An Investment Opportunity

Aug 18, 2007
Bank foreclosed homes are basically homes owned by banks or other money lending institutions, which they acquire after the lenders foreclose on the property. When homeowners are unable to pay the mortgage for some months in one go, bank initiates foreclosure proceedings against the homeowner. Investors have the chance of buying the property from the owner directly till the foreclosure is finalized. Owners on the other hand are eager to sell their property, as foreclosure acts as a blotch on their credit report. Investors are in for a good profit if the property has accrued ample equity.

When the foreclosure is finalized, bank foreclosed homes are put up for sale, either via real estate auctions, or directly by the bank. At this juncture, lenders are very keen on selling the bank foreclosed home for various reasons:

Following are some reasons for selling bank-foreclosed homes

. Owning bank-foreclosed properties is not cost effective for lenders, as they are very expensive to maintain. This is because the bank has to bear insurance on the property, secure and maintain the property, and pay taxes.

. Lenders possessing a large inventory of bank-foreclosed homes is not a good sign, in view of the fact that it just amplifies their bad lending decisions.

. Lenders have to cover for the losses incurred from the bank-foreclosed homes.

Banks flourish by granting loans- for cars, homes, new businesses, etc. They classify highest-risk borrowers and thereafter compose the terms and conditions of the given loan. In spite of this there are times banks by mistake issue loans to individuals that are incapable of paying them. For instance, when people become ill or lose jobs, they are able to make mortgage payments per month only at times. Whenever this occurs, they evade loans, making lending banks foreclose on their homes. This makes the banks legal owners of the property.

Nonetheless, banks are least concerned about home ownerships, as maintenance and repairs of homes is quite costly and a deviation from the original purpose of business and a major reason why banks are usually very keen to sell off foreclosed homes at the earliest. The banks set the selling price for the properties, suggesting that various foreclosed properties are sold at prices lower thank their original market value.

The low selling prices imply that one can make considerable benefit by purchasing and then renting or reselling foreclosed properties. In comparison to other real estate investments, one may not need much capital initially; besides, homes can be often bought with little or no deposits.

To go about with the buying and selling of foreclosed homes, one need not hold much experience or knowledge. The basic concept in this procedure is very clear-cut: all you would have to do is buy bank foreclosed homes that are priced much lower their original market value, revamp them if needed, and then rent or resell them. By putting in just some hours for identifying the ideal property, can help you make thousands within no time.
About the Author
Sell Your Home Fast? As Is Now will buy your house in 24 hours if approved and you get cash in your pocket. We help you get rid of your home fast for any reason including to Stop Home Foreclosures : http://www.asisnow.com/main.php.
Rating:
Please Rate:
(Average: Not rated)
Views: 109
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources