Buying a Foreclosed Home: Good or Bad?


the property itself. This is only for those with a stomach for risk and lotsof cold hard cash. Of course, if you have that kind of money, you could just buy one of the many non-foreclosed homes on the market.

Bank-owned properties–foreclosed properties that are not auctioned off and become owned by the bank (also known as REO or real estate-owned properties)–will be put it up for sale through a real estate broker. This is the easiest option for those seeking to buy a foreclosed property, but you may not get as good a price as you might with the other two options, as the bank is going to do its best to get a sale price at or near market value for the property. However, the sheer number of foreclosed properties on the market, with thousands more to follow, has put banks under pressure to move these properties, which could give you some leverage in negotiations. Tap the REO Network’s database to find REO brokers in your area.


×