If you are considering purchasing a bank-owned foreclosed property, then you these 15 facts will give help inform you about what to expect.
What is a Bank Owned Foreclosed Property?
A bank forecloses on a property when the person paying the mortgage stops making payments. When someone takes out a loan on the house, the house becomes collateral in the event they don’t pay the mortgage. If payments become seriously delinquent, the bank steps in and terminates the equitable right of redemption. At this point, the bank takes back the house to sell it. In this way, they recoup some or all of the money owed.
Don’t Expect Rock Bottom Prices
People sometimes have the idea that a foreclosed property is going to sell for a rock bottom price. They…