1. [Volume 1, Issue 4]
The
Homebuyer’s
Guide to Bank
Owned
Foreclosures
Contents
Foreclosure auctions are the most common Introduction……………………. 1
type of foreclosure sale, but not all
foreclosures sell at auction. Some fail to meet Steps to Buying the Home…..2
the minimum desired bid. In some cases,
particularly in the case of government Contact Info………………………. 3
foreclosures, the lender makes the highest bid.
Once the lender has gained ownership of the
property, it is considered to be Real Estate
Owned (REO).

2. 2
Some buyers and investors prefer buying foreclosed homes
from the lender rather than through a short sale or auction.
Investors particularly like being able to negotiate directly
with the bank or lender as opposed to the homeowner or a
trustee. This guide will show you the benefits, steps and tips
for buying foreclosed houses owned by a bank or lender:
 Hire a realtor: Some lenders are overly cautious about selling foreclosure homes to
unrepresented buyers. Even experienced buyers may want to consider hiring a real
estate agent.
 Research the market: Find out for how much similar foreclosures in the area are
selling. You should research the regular housing market as well, especially if you
intend to resell the house.
 Apply for a loan: Getting pre-approved for a loan greatly increases your chances of
successful bids on foreclosures for sale. The lender will likely want to see proof that
you can afford the home.
 Inspect the property: You’ll want to factor in liens and the cost of repairs into your
offer on the house. If you have time and permission, run a title search and hire
professional inspectors.
 Witness other bank sales: You may want to witness other sales by the same lender
to form an idea of how they do business. They may be expecting things like a
minimum upfront payment.
 Make your bid: Base your offer on everything you’ve learned thus far. Take the cost
of similar real estate foreclosures into consideration. Subtract this by the estimated
cost of repairs and liens.

3. 3
Be as precise as possible when estimating the value of
Foreclosure DataBank foreclosure properties. Lenders don’t provide allowances
for repairs. This is something you should take into
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Do you need to know more about bank owned foreclosure
sales? Read our blog:
http://www.foreclosuredatabank.com/bank_foreclosures
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