Bank-Owned Properties

According to the most recent data released by the Mortgage Bankers Association (MBA), foreclosures continue to rise and the delinquency rate has steadily risen of the last 18 months. The pace of foreclosures has stepped up considerably. This forces the bank to take over the property through the judicial system and also via a auction on the 'courthouse steps'. However, if the property doesn't sell at auction, the bank must take possession of the property and then dispose of it on the open market. Usually these properties tend to sell for less than the normal retail market, however, there are some considerations before buying an REO (Real Estate Owned by bank) property.