What is a Bank Foreclosure?
When someone purchases a home with a bank loan, the bank uses the home as collateral for the loan. So if the buyer is unable to make the monthly payment, the property reverts back to the bank. The bank does not want to keep the property because they are in the business of lending money. The property is a liability to them because it is an outstanding debt. Therefore they need to find another buyer for the property. This is where foreclosure listings come in. The property can be advertized for sale at a lower price to entice people to buy.
What are foreclosure listings?
Foreclosure listings are a list of available properties that have been foreclosed, or taken back by the bank. They need to be resold to clear the banks accounting balance. So many times the banks will put these properties on a list so prospective buyers will see them.
A Foreclosure Listing Service offers a listing of available foreclosed properties, that is updated on a daily basis. Often the information they provide is; the price, some features or selling points to the property and the amount of yearly taxes if available. These services are offered for a small monthly membership fee, and usually have a free 7 day trial offer so you can try it out with no risk. If you are not satisfied you can always cancel before the 7 days are up.
This is a great opportunity for those looking to buy bargain priced homes. These homes have been reduced in price for fast sale, and may be in need of a little fixing up that will increase the homes value if the buyer decides to resell it in the future. Many people looking to get started in the real estate business, start out buying foreclosed homes.
Benefits of buying a foreclosed property?
The benefits to the buyer are buying a property that is priced below market value, and will not be tied up with liens from other parties. The title will be free and clear to the buyer.
By the way, by researching and comparing the different free foreclosure listing services in the market, you will be able to determine the one that meets your specific requirements, plus the free or cheaper options. This way you will save time through up to date foreclosure listings and money by getting better results over your investment.