Bank Foreclosures And Government Foreclosures: A Comparison
Bank foreclosures are preferred by first time buyers looking for an affordable home to become their primary place of residence. These buyers have the ability to take out a commercial loan from a lender and would like to find the most secure transaction they can find. They are often advised to consider bank owned, or real estate owned properties, as these homes can fulfill the new buyers requirements.
Things in Common
Like bank foreclosures, government owned foreclosed homes are being sold through auctions and are typically listed online in multiple listings services and other online foreclosure listings sites. Both types of homes are sold 'as is', so buyers should expect to spend money on repairs and rehabilitation.
Differences
Government foreclosures are offered by a number of government offices that are either in a position to seize properties or provide mortgage assistance to individuals while real estate owned homes are sold by banks or lending companies. Government foreclosed homes are primarily being offered to first-time buyers and owner-occupiers, particularly those who are not eligible for a traditional home loan from a private lender.
When it comes to ease of transacting, bank owned homes lead the way. You can also negotiate for more discounts and incentives with banks, especially if you plan to pay cash. Among the things that banks will offer along with the home is title insurance and pest certification. Also, the home will have already been appraised for market value, so you need to create an offer that will be close to this appraisal.
Sometimes, that institution selling the distressed property will even be open to providing the financial facility for the buyer. But in both types of foreclosures, the buyer requirements are pretty much the same. Buyers have to have a steady source of income and should have a spotless credit record. Both banks and government entities would require buyers to submit documents that will manifest the capability to meet obligations for a long period of time. Anyway, bank foreclosures still remain to be more popular among buyers than government foreclosures.
Things in Common
Like bank foreclosures, government owned foreclosed homes are being sold through auctions and are typically listed online in multiple listings services and other online foreclosure listings sites. Both types of homes are sold 'as is', so buyers should expect to spend money on repairs and rehabilitation.
Differences
Government foreclosures are offered by a number of government offices that are either in a position to seize properties or provide mortgage assistance to individuals while real estate owned homes are sold by banks or lending companies. Government foreclosed homes are primarily being offered to first-time buyers and owner-occupiers, particularly those who are not eligible for a traditional home loan from a private lender.
When it comes to ease of transacting, bank owned homes lead the way. You can also negotiate for more discounts and incentives with banks, especially if you plan to pay cash. Among the things that banks will offer along with the home is title insurance and pest certification. Also, the home will have already been appraised for market value, so you need to create an offer that will be close to this appraisal.
Sometimes, that institution selling the distressed property will even be open to providing the financial facility for the buyer. But in both types of foreclosures, the buyer requirements are pretty much the same. Buyers have to have a steady source of income and should have a spotless credit record. Both banks and government entities would require buyers to submit documents that will manifest the capability to meet obligations for a long period of time. Anyway, bank foreclosures still remain to be more popular among buyers than government foreclosures.