Bank owned homes are a unique type of real estate that is sold directly to the public by banks. Normally, banks wouldn”t be in the business of selling real estate, but bank owned homes are sold due to special circumstances involving a foreclosure. When a homeowner takes out a home mortgage loan, one of the stipulations is that if the homeowner stops making payments on their loan, the bank can foreclose and attempt to sell the property in order to win back the money they”ve lost on the loan. Usually this happens through a public foreclosure auction. However, properties at foreclosure auction don”t always sell for the minimum bid amount, and in some cases a foreclosure may be awarded directly to the bank. Also known as REO (real estate owned) homes, bank owned properties are properties that have come under bank control due to a foreclosure, that the bank is now trying to sell.
Now you know the definition but not as easy as it looks to purchase one.
Call me with many years of experience in REO work
Suzi Stemper CDPE, SFR, SFI, NABPOB