Buying Cheap Bank Owned Homes??

[Tony Marcelle]

For those of you who do buy bank foreclosures, how are you able buy these properties for much cheaper than its listed price in the MLS? How are you negotiating with the banks to buy the homes for a very low price?

[Jeff Kehl]

@Tony Marcelle you mostly can't these days. The good deals are gone and the few that there are go to those that have been playing the game a longtime and know the subtleties. So don't kid yourself. 

That said investors can get a decent deal on foreclosures in a few ways. 1) In pre-foreclosure buying directly from the owner if allowed by law. 2) At the foreclosure auction, but you have to have cash, buy sight unseen, do your due diligence and title work 3) As an REO on trouble properties. If it has problems most buyers don't want to deal with like Fire, Mold, Foundation, etc. These are easy to find as they don't sell for 6 + months.

All of these methods I described are not for the faint of heart and involve plenty of risk so please don't attempt if you are not prepared to lose a large amount of money.

The days of buying 'cheap foreclosures' are over for now at least.