Home » Personal Finance » Bank Foreclosure List Online Lists Give You the Best in Bank Foreclosures

You can find a bank foreclosure list on many online sites. While some are free, others require a subscription fee. A bank foreclosure list will list different kinds of homes and properties that have been foreclosed upon either by the lenders or by the government in the form of tax foreclosures.

Many types of homes, income property, commercial property, and even land get foreclosed upon when the property owners cannot meet their mortgage obligations. Unfortunately, given the current economic conditions, this has been happening with increasing frequency in the past 2 and a half years.

Sometimes an individual’s economic life changes as a result of a layoff, medical problems or other issues. But, lately, the economic environment has changed for many homeowners and as a result, there are more bank foreclosure. List of these foreclosures are available for savvy investors.

The conditions that have caused so many foreclosures involve the “teaser” interest rates being reset causing the monthly payments for homeowners to spike. This has resulted in fewer people being interested in buying new homes, which, in turn, has lead to a decrease in buying homes. Many home owners are “upside down” meaning they owe more than the home is worth. As a result, it makes more sense to walk away from the home and abandon the mortgage.

This means that now there is a large bank foreclosure list of bank owned homes.

A bank foreclosure list can work in a number of ways. The homes can be purchased during the pre-foreclosure stage when the foreclosure is not yet complete. At this stage, the home is bought directly from the homeowner. Often, the bank will agree to write off a portion of the homeowner’s mortgage to get the property off the books.

You are actually doing a service to both the homeowner and the bank when you buy a home in pre-foreclosure. This is often called a “short sale.” You buy a home for less than the mortgage amount. The homeowner gets out of the mortgage. While the bank has to write off a portion of the mortgage, they do get paid the maximum amount possible and they can clear the home from their books without having to take on the obligation of the sale themselves.

You should know that many short sale arrangements do not go through. Sometimes this is because the bank balks at the price that the investor wants to pay. Other times it is because the investor cannot line up the financing that they thought they had on tap.

If the homeowner cannot arrange a sale when they cannot meet the mortgage obligation, the bank must foreclose and sell the property at auction. When you get a copy of a bank foreclosure list, some of the properties will be at the auction stage.

If the bank can’t get a fair price at auction, it will buy the property itself. At this point, there are bank foreclosure list populated with bank owed homes.

At each of these stages, the savvy investor has an opportunity to make a significant amount of money. If you have cash on hand or have access to a line of credit, you can make a lot of money when you get a bank foreclosure list.

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