Bank Foreclosures Real Estate Service

Author: Ernani Uchoa

Bank Owned Properties are homes that have been repossessed by a lender because the owner has defaulted on the mortgage. These properties are then sold to the public, sometimes at auctions.

A popular misconception about bank owned homes is that they are guaranteed, risk-free investments. Many people mistakenly believe that they are free from any legal or monetary liability. When a loan goes into default, the lender simply sells the property in order to recoup their investment. Another misconception about bank owned foreclosure is that they are always sold at bargain basement prices. It is not necessarily true that the lender will sell the property at just the amount of the loan balance. In actuality, bank foreclosure real estate is usually sold to the highest bidder, which may or may not be the lender.

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