Idaho Falls bank owned properties

Bank owned homes for sale are one category of distressed homes. Distressed homes are homes that are in danger of, or will be, or currently are in foreclosure. The other broad category of distressed homes is short sales, which are homes that are not yet in foreclosure.

What are bank owned homes for sale?

Bank owned homes are homes in which the bank is on the title to the property as the owner. The process that led to the bank being on the title is the process of foreclosure. Foreclosure is a process that is initiated by the bank because the homeowner failed to keep up with monthly payments on their home loan. Why does the bank initiate the foreclosure process? Once the bank is on the title to the property, then the property can be sold as a bank owned property and the bank will receive the net proceeds from the bank owned sale. These proceeds can be used to help the bank re-coup the money that they did not receive when the homeowner failed to continue to make payments on the home loan. It is important to remember that only the bank can initiate the foreclosure process, not the homeowner. The homeowner can certainly decide to stop making payments on the home loan, but this does not initiate the foreclosure process. It is often the case with bank owned homes that the bank does not initiate the foreclosure process for several years after the homeowner has stopped making payments.

Bank owned homes for sale

Bank owned homes for sale are relatively easy to purchase. With the help of a real estate professional, the home buyer can purchase a bank owned home with the same contract and same time frames as a normal privately-owned home. In fact, in many cases, the purchase contract on a bank owned home is more easily negotiated than a traditional home because the bank is emotionally detached from the negotiated price. Since the home represents a “non-performing asset” on the bank’s balance sheet, the bank is motivated, but not emotionally involved, in getting the home sold. This often results in a quick negotiation. For this reason, bank owned properties are an excellent choice for the home buyer.

Bank owned home sales were a big part of the economic downturn in Idaho Falls that began in the latter half of 2008. As home buyers slowed down their pace of purchasing Idaho Falls homes, home prices began to drop due to decreased demand. As home prices dropped, the equity position of home owners eroded rather quickly. Many home owners found themselves in a negative equity position, which means that more is owned on the home’s mortgage than the home will sell for on the real estate market. Negative equity, coupled with the general economic downturn of 2008 and higher unemployment, caused many Idaho Falls homeowners to default on their mortgage payments. A large percentage of these homes with defaulted mortgages were eventually foreclosed on by the banks. These homes became bank owned homes and were sold as such. The percentage of Idaho Falls homes for sale that were bank owned properties increased by about 25% during the period of 2008 to 2011.