Ed Combs

Bank foreclosures are good a investment

Bank Foreclosures should be an essential part of your foreclosure properties investing strategy. A bank foreclosures occurs when the bank takes possession of a home as a result of a foreclosure.

If the lender (bank) takes possession or ownership of the property either via an agreement with the owner during preforeclosure or at a public auction the lender will want to sell the bank foreclosure to recover the unpaid loan amount.

The bank must clear the title and take care of any maintenance on the home prior to putting it back on the market as a bank foreclosure. A bank foreclosure is also commonly referred to as an REO (real estate owned) home , although the terms are interchangeable.

A bank foreclosure can become a government foreclosure if the loan is backed by Housing and Urban Development (commonly known as HUD) or the Department of Veteran Affairs (VA) – if this is the case then the property would be resold by the government agency and would not be considered a bank foreclosure.