Differences Between Foreclosed and Bank-Owned Property
When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be prepared to pay with cash in hand. Finally, you'll get the property entirely as is. That possibly will involve current liens and even current denizens that may require removal.
A bank-owned property, on the contrary, is a more tidy and attractive option. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The lender will see to the elimination of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.
It's frequently believed that any REO must be a good deal and an opportunity for guaranteed profit. This isn't always the case. You have to be prudent about buying a REO if your intent is to make a profit. While it's true that the bank is often eager to sell it quickly, they are also looking to get as much as they can for it.
Learn more about buying bank-owned or foreclosed property.
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