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Bank Owned Property

Many people are talking about all the great foreclosure deals. Or not. I have heard many comments similar to "I only pay pennies on the dollar". Some folks are locked into the idea that as soon as they see or hear of a foreclosure.....they view it as if the property is on the clearance rack.

Here's the deal as I know it. Let me explain what is really happening. You've been loaned $110 (the mortgage). You agreed to repay the money over a specified period of time (the term of the loan). Now....everything has been working out just fine until you lost your job, got injured, have a new addition to the family or you have taken on too much debt. SHH-NIKIES! You can't repay your debt anymore.

You either stop making payments or just abandon the loan you owe. This is the period of time when foreclosure starts taking its hold on you. In Minnesota there are rules that apply to both participating party's during the foreclosure process.

Here's the meat of what you’re after......

Understand one thing. BANKS DON'T LIKE TO LOSE MONEY! PERIOD! The mortgage company that is selling the home has had at least two licensed real estate agents provide them with Broker Price Opinions. The banks are not that much different than you or I, if we were selling our property. You would tell me to go fly a kite if I came to you with an offer 25%-40% under list price. Wouldn't you? Sure you would.

Are there great buys out there?

OH yhaa! You need to be patient. Most of the time the really good buys, are the ones that most people wouldn't touch with a ten foot pole. These are the homes that are a little moldy, the carpet is terrible, kitchens need to be replaced, and the walls have holes kicked in them…….and a whole lot more. This is not to say that we can’t find homes in ok condition at great prices. The bargains are bargains for a good reason. They need to have a lot of work done to them.

Yeah but……I was watching an infomercial and they said if I buy the program I could make thousands in real estate. The best answer is YES YOU CAN! But, if it was easy everyone would be doing it. Wouldn’t they? So……use your resources to help and guild you in the right direction. Don’t become another statistical foreclosure and jump into real estate without having a solid plan of action.