The Keys to Bank Foreclosures

By: philip smith

Imagine the pride of receiving your keys to your first home, a dream realised because of an incredibly well timed purchase from among an array of bank foreclosures. If you have been unable to realise your goal and buy that first home as house prices have continued to climb these last few years, now may present your best chance ever to unlock your own front door. Not only are prices falling in certain districts of many cities and in suburbs where there is a glut of unsold new construction, there are a growing number of bank owned homes of all ages, styles, size and condition competing for buyers in a cold seller's market.

That's what many investors have been waiting in the wings for, and its a long time, maybe 7 to 10 years in some locations, before they last saw this buying opportunity. For the home buyer this means that not only can you make a choice from among many keenly priced traditional homes, you can expect to find a foreclosed property at a good discount below the best priced and comparable traditional home. Taking advantage of buying more for less may mean the difference between buying now when there are many choices for fewer buyers and later, when competition from experienced negotiators will be fiercer. Yes, there is a opportunity 'cost' for waiting to follow in the footsteps of the herd!

Bank foreclosures are a great choice for the first time or cautious home buyer prepared to face some necessary repairs. No home is ever perfect whether you buy a preloved or build your own, all homeowners who have had the chance to start afresh will tell you that! So be prepared to be a little flexible about condition and the level of repairs required.

With the escalation of numbers of homes foreclosed upon by banks this year, the former homeowners may have had little or no equity prior to the loss, the market price of the home may be close to what the lender is trying to recoup and discounts achievable much thinner. The agent you work with will have an idea of that bank's policy guidelines, and any allowance or incentives as the house sits vacant longer. Do the math, ask lots of questions, read up a little, don't overextend your financial capability, and soon you can take possession of those keys.

Foreclosures
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