Bank foreclosure homes are also known as real estate owned (REO) foreclosures. When the homeowner can no longer make the mortgage payments to the bank the bank will then foreclose on the property in the attempt to repossess it.

This is how the foreclosure process begins with the bank. The foreclosure process can take a long time.  This allows owners the possibility to sell their house to avoid getting it foreclosed on and ruining their credit, this is known as the pre-foreclosure process. Often the property will sell for less than what is owed to the bank, which is called a short sale.

Many times owner’s are not able to sell their house for what they owe on the mortgage and the title of the bank is transferred back to the bank and the St. Louis property is officially a foreclosed home. Banks do not want to own foreclosed properties as they have to pay for the upkeep of the property, it looks bad to have foreclosed homes on their books, and having foreclosed homes that they have to deal with takes away time from what banks do and that is dealing with money.

These reasons are why banks want to sell their foreclosed homes as quickly as possible and this allows potential first time home buyers in the St. Louis, MO area a chance to capitalize on these REO house opportunities. There are many times where The Hermann London Group has negotiated deals where their clients have purchased a bank foreclosure property at prices 15-60% below market value!

Call to speak with one of our foreclosure specialists today,  314-802-0797