The data for 1Q12010 is in, and it shows that foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 932,234 properties in the first quarter, a 7 percent increase from the previous quarter and a 16 percent increase from the first quarter of 2009. One in every 138 U.S. housing units received a foreclosure filing during the quarter.
The most time consuming and complicated foreclosure homes to buy are, without a doubt, Bank REO (Real Estate Owned) properties. Information on bank REOs is rarely easy to obtain. A great deal of research is required and the only way to conduct bank REO research is to spend countless hours at the county courthouse (for greater convenience, you can search the foreclosure homes listed on Hudindex).
There is considerable financial risk involved with bank REOs as well. This is because the buyer must bring to the auction a nonrefundable cashiers check for anywhere from $10k to $50k. It may be possible to come away with a higher price-range home in this arena, but the home in question may not be vacant and gaining access is at times difficult.
Most bank REOs have a third-party manager who is responsible for the upkeep of the foreclosure home while the bank owns it. This is your liason to the bank. Offers must be made through the third-party manager and they will relay counter offers from the bank. Generally, banks do not negotiate much on prices, so if you offer less than the asking price, be prepared to go through the negotiation process several times for a minimal discount.
For the latest foreclosure news and information, visit www.ushud.com, America's only free foreclosure resource.
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