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How to Find US Bank-Owned Properties

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Lenders often need to repossess properties that go through the foreclosure process. When an owner can’t afford to repay the loan, the bank must reclaim the property to get its money back. However, banks don’t want to own these homes. More often than not, they just want to make their money back. That encourages lenders to sell U.S. bank-owned properties at affordable prices.

The U.S. has had a fairly low foreclosure rate over the last few years. In 2010, the foreclosure rate was 2.23%. In 2021, the rate was just 0.11%. Having fewer foreclosures likely benefits the economy, banks, and homeowners. It also makes it more challenging for real estate professionals to find U.S. bank-owned properties. 

The following guide will make it easier for you to identify U.S. bank-owned properties that you can add to your investment portfolio or sell to clients looking for affordable housing. Ideally, though, you don’t have to wait for a property to enter foreclosure. With the right technology, you can find pre-market properties that will likely enter foreclosure within the next 12 months.

Check Bank Websites

Some banks will list their real estate owned properties (another name for bank-owned properties) on their websites. Expect to find a lot of diversity between websites. Some banks will list a lot of information about the properties they own. Others will give you the bare details, which means you will need to contact them for more information.

Keep in mind that U.S. bank-owned properties are sold “as is.” You do not have an opportunity to negotiate with the seller to have repairs and renovations done before you buy. Consider the possible cost of repairs when making an offer.

Recommended reading: Everything to know about bank-owned commercial properties for sale

Use Websites That Specialize in US Bank-Owned Properties

Not all banks want to get involved in selling the properties they own. Instead, they hand over their information to websites that specialize in selling U.S. bank-owned properties. 

These websites tend to offer plenty of information about properties for sale. There are downsides to taking this approach, though. 

First, you or your client will probably end up paying a higher price because the website needs to earn money from the sale. That could make it harder for you to convince clients to buy bank-owned properties, especially since they want to spend as little as possible.

Second, you face a lot of competition on these websites. Unlike professional real estate databases that require memberships, anyone can use the websites to find properties. You could discover that a lot of homes get sold before you have a chance to show them to potential buyers. 

Join a Subscription Real Estate Database

All professional subscription real estate databases should have features that let you search for U.S. bank-owned properties in your area. Some databases work better than others, though. For example, ProspectNow lets you filter listings so you can focus on properties that fit specific descriptions. You might search for U.S. bank-owned properties within a price range. You can also focus on commercial or multi-use properties in foreclosure.

If a real estate database doesn’t let you search for bank-owned properties, you probably need to look for a better option with more advanced features.

Find Pre-Foreclosure Properties

You don’t have to wait for the bank to reclaim a property before you buy it. Buying pre-foreclosure homes can also give you great opportunities to find properties selling at affordable prices.

Unfortunately, many real estate professionals struggle to find off-market properties. Since they haven’t been listed, it’s difficult to know that the owners want to sell. The right technology, however, can help you identify off-market properties before the current owners even know that they want to sell.

The Power of Predictive Analytics

How can you find pre-foreclosure properties when the owners haven’t put them up for sale? That’s where predictive analytics can help you find real estate opportunities in your region.

Predictive analytics uses a combination of machine learning and artificial intelligence to determine which properties will likely get listed within the next 12 months. By the time a home enters pre-foreclosure, the owner has probably missed several payments. Predictive analytics can look at missed payments and other factors to find off-market properties.

It takes time for lenders to foreclose on a property. Before they reclaim possession, you have a chance to buy the real estate from the current owner. This approach can create a win-win situation for everyone involved. The owner doesn’t have to go through the foreclosure process and the credit damage it causes. The bank doesn’t have to spend resources repossessing the property and displacing the owner. You or your client get to buy a piece of real estate at a below-market price.

Right now, the owner might not think about selling their property. Perhaps they believe that they can turn their finances around and catch up on their mortgage payments. When you reach out to them, they might disregard your offer. When the time comes to make a serious decision, though, your name will stand out as someone with the foresight and experience to help sell real estate quickly.

Recommended reading: How to Find Off-Market Homes for Sale by Owner

Start Your Free Trial With ProspectNow

ProspectNow gives you the easiest, most reliable way to find U.S. bank-owned properties. You can experience the tool for yourself to see how well it works for your business.  

ProspectNow has been around for over a decade (since 2008). The data that users get from ProspectNow is a lot more expensive on other platforms. By using ProspectNow, you will close more deals and make more money! ProspectNow is a vital tool for their business success in real estate or real estate marketing. Additionally, ProspectNow is trustworthy easy to do business with, and a provider of reliable data.

Start your free trial now to find U.S. bank-owned properties at low prices for your clients or investment portfolio.

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