Deysi has a question for The Bank Foreclosure Guide. Deysi asks “do banks sell homes directly when someone fails to make their payments?” Below we will attempt to answer this popular question.
Banks generally do not sell their foreclosures directly. As a buyer, you have to purchase in the manner the bank seller has directed. Since there are so many different banks and corporate entities selling foreclosure properties, there are also a large number of ways in which these properties can be sold.
The most popular ways that banks sell foreclosures is on the open market through a real estate agent. Auctions are also a popular way banks sell foreclosures. Companies such as Auction.com, Hubzu and Hudson and Marshall often have foreclosure properties for sale on their sites.
There is one instance in which a buyer can purchase directly from a bank. Some larger banks, servicers and investors will bundle a bunch of mortgage loans that are not making payments and sell them as a group. This is known as a non-performing loan (NPL) sale. These are sold as large bundles though and not individual properties. The buyer of these packages is also responsible for the foreclosure process. These buyers are generally large corporate investors that can handle a nationwide package of properties.