The Nationwide Foreclosure List: Finding Secret Bank-Owned Properties
Countrywide’s Foreclosure List offers thousands of bank properties across the country; many of which are sold at deeply discounted prices. Once the largest independent mortgage lender in the country, Countrywide was bought by Bank of America in 2008 for a whopping $4.1 billion. BOA took on a massive portfolio of ‘toxic assets’ consisting of pre-foreclosure and foreclosed properties.
Today, Countrywide’s list of foreclosures is available to the public through the Bank of America website. Real estate investors and prospective buyers can use the list to locate single and multi-family homes, commercial real estate, vacant lots, and new construction homes.
Countrywide/Bank of America properties for sale include bank properties, homes in foreclosure and short sale real estate. Buyers can find a large number of discount properties and cheap houses for sale. Properties on the foreclosure list are sold through an independent real estate agent or directly through BOA’s Loss Mitigation Division.
Buying Countrywide property is no different than buying real estate through real estate agents. Buyers must go through the same home loan financing process as anyone else. However, people who want to buy bank-owned properties through BOA must get a loan prequalification to determine how much house they can afford.
Countrywide foreclosed real estate buyers may qualify for first-time homebuyer programs and tax credits. The homebuyer tax credit was recently extended through June 30, 2010. First-time homebuyers are eligible for an $8,000 tax deduction. Homeowners who have resided in their primary residence for five years or more are eligible for a $6,500 tax credit when they purchase a more expensive home.
It is important to understand that real estate owned by the bank consists of foreclosed properties that were not sold through action. Also known as real estate or REO properties, these homes are sold “as is” and usually require some type of repair. Buyers must perform due diligence and obtain a home inspection to verify that the home is worth the listing price.
The main difference between foreclosed homes and bank owned homes is that once the lenders take possession, the attached liens and judgments are removed and the home is sold with clear title. This is especially beneficial for first-time homebuyers and those unfamiliar with the process required to purchase foreclosed real estate.
Repossessed homes are often a good investment property that can be used as a rental or vacation home. Purchasing a foreclosed property located in a popular tourist destination can provide the opportunity to generate positive cash flow.
Investors using Countrywide’s foreclosure list to search for rental homes should take the time to research the area where the properties are located. Renters with school-age children generally look for top-rated schools. Others may want easy access to interstate systems or business districts. Familiarizing yourself with the area and what it offers allows investors to find the right REO homes to attract the type of tenant they are looking for.
Buying repo houses does not always equate to significant savings. Banks have already incurred a loss through the foreclosure process on the property. Bank properties listed on Countrywide’s foreclosure list have little room for price negotiation.