Home buyers and investors can use the Prudential real estate buying bank owned foreclosure list to locate a variety of discounted properties. Bank owned homes are quickly becoming the preferred choice amongst buyers because they are priced below market value and provide instant home equity.
The Prudential real estate buying bank owned foreclosure list includes single and multi-family residences, mobile and manufactured homes, commercial and industrial real estate, and vacant land. Regardless of the type of discounted property you are seeking, chances are you will find it on the Prudential foreclosure list.
Bank owned homes refer to foreclosure houses that did not sell through public auction. When no one submits a suitable bid on properties sold through auction they are returned to the originating lender. Banks must sell the properties in order to recoup foreclosure costs and prevent future expenses. When banks hold foreclosed properties they must maintain the property and pay property taxes and insurance costs.
Due to the massive influx of bank foreclosures there are several million distressed properties; making it nearly impossible for banks to handle property sales on their own. Most banks turn to local realtors to list and manage bank owned real estate. Interested buyers submit offers through Prudential realtors, just as they would if buying any other listed property.
The majority of bank owned real estate is priced below market value to entice quick sales. When buyers make an offer on Prudential foreclosure properties the listing realtor submits the offer to the bank. Lenders can accept, decline, or submit a counter-offer.
The primary reason banks reduce the cost of foreclosure properties is to remove toxic assets from their books. Banks receive money from the Federal Reserve Bank based on their profit margins. If lenders are holding millions of dollars in stagnant real estate their cash supply can be shut off until they become profitable. In addition to removing negative income producing properties, banks also need to recover losses incurred through the foreclosure process.
With that being said, mortgage providers leave little room for price negotiations on bank owned foreclosure houses. Buyers who want to purchase Prudential foreclosure real estate should be prepared to pay the full purchase price.
Buyers are required to obtain prequalified home loan financing before submitting offers on Prudential bank owned properties. Borrowers can obtain financing from the lender of their choice. Prudential real estate agents can assist buyers in locating home loan providers or buyers can seek out mortgage lenders on their own.
Buyers who are able to buy foreclosure homes with cash can sometimes further negotiate the purchase price. Mortgage lenders are usually willing to reduce real estate prices when buyers present a cash offer.
Buying bank owned foreclosures with cash eliminates the possibility that buyers cannot obtain financing and lessens the amount of time required for closing. Buying foreclosure homes with cash has become a common practice of real estate investors.
Individuals with an interest in purchasing Prudential real estate bank owned foreclosures should visit PrudentialProperties.com to view property listings and locate a Prudential realtor.