Bid for your own Repo Houses
June 6, 2009 § Leave a comment
Repo houses also known as repossesed houses are one of the most affordable kinds of home. Thanks to this, having the house you ever dreamed of can now be easier despite of having no sufficient budget for it. The good news? You can have one without selling your other properties just to have sufficient fund.
What is it?
From the word itself, repo houses are estates that have been repossessed because of the borrower’s inability to pay back a mortgage on its due date. Thus, if you have an obligation related to mortgage, have an assurance that you can really pay on its due date so your house won’t be one of the repo houses seen in auctions.
Yes, it’s Cheap
Usually, banks who have just got repo houses from borrowers are in a hurry to sell these. They’re afraid that the house would soon need repairs and maintenance and if ever this happens, the bank would just spend more money for the repo houses. Is there an existing bank that would do such thing? Of course, there’s none, unless a bank you know’s like a “charity bank”. Banks search at once for buyers who are willing to pay them equivalent or even higher amount of money than the mortgage of the previous borrower.
The auction is the most common type of marketing repo houses. Privilege to buy it will be given to the person who bid the highest. Through this process, repo houses sellers/institutions get higher amount of money. For the potential buyers, what’s the best thing to do? In the start of bidding, bid as low as you can. God might be on your side and you might be the only one who wants to bid on the repo houses you’re dying to have. Less money used, better house–that could be the result if you bid correctly•Jenn Besonia