Bank owned properties listings are a great way to buy low-cost but good quality homes directly from banks. These homes are often sold below market value because a previous homeowner has defaulted on a mortgage. Since banks are not in the business of selling homes, they are often willing to sell homes at a discount just to get back the money lost on the loan. Bank owned properties listings can be a great resource, but keep in mind a few tips to use these listings effectively.Make sure that you understand what you are looking for and what a good price is for the type of home you want. Banks are under no obligation to sell their REO homes for below market value and you cannot assume that all homes in foreclosures listings are bargains. In some cases, homeowners mortgage their homes in excess of 100%, and banks must ask full market value (or more) on these repo homes to earn back the money on the loan. In other cases, homeowners only owe a small fraction of the home’s value in mortgages and the bank can sell the property for far less than market value. The only way to tell the difference is to do your research carefully so that you understand the true value of any home you consider
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