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First Time Buyers and Bank Foreclosure Properties

Many more people are considering bank foreclosure properties when buying their first home. These properties are owned by banks who have repossessed them from borrowers who have failed to pay for their monthly payments. The homes are first offered at public auctions but if they do not sell there they become bank-owned homes or real estate owned homes. Banks typically pass on their listing of foreclosed homes to licensed realtors to be marketed and sold.

Buyers of bank foreclosure properties need to be able to have the capacity to finance the homes they will buy. They can either pay by cash or take out a loan to finance the foreclosed home they intend to buy. The first step is to assess your credit score and get pre-approval for a home loan. This can be accomplished by approaching your bank or any mortgage provider to get an assessment and a pre-approval certification. This document will indicate the amount of money you can borrow, which will give you a better idea of the price range of the homes you can purchase.

Your search can be conducted in many ways but online foreclosure listings yield very good results. These web sites have a database dedicated entirely on foreclosed properties across the country. You can customize your search according to your budget and other preferences like location, home type and type of foreclosure, which in this case would be bank foreclosures.

The Purchase

When you have found the bank foreclosure properties to closely consider you may touch base with the property manager, whose details should appear on the listing. They will make an offer to the bank on your behalf and negotiate the purchase. At this point it is suggested that you request for a home inspection at your own cost to assess the cost of the needed repairs. Set aside a portion of your funds for other incidental expenses such as a value appraisal or a title search if they are not being offered.