Finding Repossessed Homes With a Bank Foreclosure Listings

What is a bank foreclosure listing?
Bank foreclosure listings are a way in which banks can get rid of their growing inventory of properties that they had repossess because their borrowers defaulted on their mortgage agreements. They provide homebuyers with a collection of important data that is needed to make an inform decision. The number of REO is steadily increasing, so bank foreclosure listings are efforts to efficiently market and sell these properties, which are liabilities to banks and mortgage companies.

1. Internet: Most foreclosure listings can be found online allowing homebuyers to conduct their search at anytime. There are great bargains awaiting in bank foreclosure listings.
   • Free: Recently, there has been a surge of free foreclosure listings on the web as a result of the high demand and fierce competition in the foreclosure market. However, keep in mind that most of these listings are not regularly updated, are often incomplete, and contain a plethora of inaccuracies. Also, note that the best properties on free foreclosure listings are snatched away within hours after they are listed. Real estate investors are not just making random guesses about which listing seems notable; they're not just casually weaving through thousands of websites while simultaneously watching American Idol after dinner. The most experienced investors who hunt for repossessed homes for a living are familiar with the ins and outs of finding great deals on foreclosure properties; thus, they are generally the ones who snag the most profitable properties.
   • Paid: Locating foreclosure properties can be a real mission. If you ask any experienced investor, he or she will tell you that a reliable foreclosure list is an essential tool in finding the ideal foreclosure property. The most reliable foreclosure listings are paid-searches. Paid searches are maintained by professionals who manage listing sites on a daily basis in order to ensure that the homebuyer will get updated and accurate information, which is critical because it is not uncommon that a foreclosure home has hidden costs that are not included in the home price. Some information that are essential in searching for a good REO investment include: address of property, name of the owner, trustee(s) or lender(s) involved with the foreclosure, an estimate of the unpaid loan balance, etc. Those who use paid listings have an advantage because they receive additional information such property tax liens that the property may have and as well as the previous owner's bankruptcy information (if applicable). Some paid searches offer the borrower's History of Notices before the home was repossessed (this way you can know if there is more than one lender who is foreclosing).
2. Bank/lending company's website: Investors can go directly to the lenders themselves
   • Some major banks and lending companies post their REO listings on their own websites. Fannie Mae, Bank of America, HSBC, JP Morgan Chase Bank
   • Unlike listings posted on individual banks, paid searches hold listings for properties owned by a number of different lenders and banks; thus, a homebuyer will have a wider variety of options to choose from. The owner's contact information should be provided with the description of the home. If you go to statelocalgov.net, you can find the local property assessor in your area in order to obtain the contact information of the owner of a property.
   • Smaller local banks usually have just one individual who is in charge of the bank's REO inventory. Generally, investors do look for listings held by small, local banks. They contact them after they have found a property, and the local bank happens to be its owner.
   • Local realtors can also help guide you through the process. It is a good idea to make sure that the realtor has experience with buying foreclosures because there are enough differences in the processes that make it difficult for a unexperienced realtor to provide you sufficient service.