Is it Time to Purchase Bank Foreclosed Properties?
It's nice to be an opportunist and better one's financial outlook with timely investments. With the increased number of mortgage defaults and decreased real estate values, it may be time to purchase an investment property soon. Exactly how soon is a debatable question, but many experts are guesstimating between the end of 2008 and first quarter of 2009.
One of the best ways to buy a decent property below market value is through bank foreclosures. With so much information available on the Internet, I find it very easy to find bank foreclosed properties. These bank foreclosed properties are also called Real Estate Owned (REO) properties.
To search for these bank foreclosed or REO properties, you can visit this Coldwell Banker website. This is the only web site that I found so far that does not charge a fee for obtaining a list of foreclosed properties. On this website, you can query a list of REO properties by zip codes. I even once tried contacting the bank directly via Countrywide website. However, Countrywide appears to use other real estate companies, such as Coldwell Banker, to help sell their foreclosed properties.
I personally visited a couple of bank foreclosed properties, and they were in relatively decent condition. The homes were vacant for easy showing. You can finance the homes with a traditional mortgage. You are entitled to an inspection before making an offer as well. Those are the two big advantages of purchasing a bank foreclosed property instead of county foreclosed property.
Once you find a property of your interest, you can get a comparative value from Zillow to get an estimate market value of the home. You can also visit your local county web page to get the sales history of the home and the appraised values of the home for free.
Once you have the comparative value of the home, you can easily decide whether the resale value is worth your investment. If you would like to invest long term and would like to rent out the property for a while, don't forget to calculate possible financial outcomes of the purchase and rental of an investment property.
I hope this information will help you financially. Please share with us if you have other useful information on buying a foreclosure property.
If you are currently going through foreclosure, God bless you and I hope you can keep your home!