When a homeowner defaults on his mortgage loan, the bank will send a notice of default to the homeowner. If the demand goes unheeded and the period given to the homeowner to make his payments current was ignored or has not been complied with,
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Secondly,
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There are two major reasons why bank foreclosure properties are good investments. First, banks always aim for a quick sale in order to recover what they have lost. It is very unlikely that they would want to sit on a property for too long or maintain it within their inventory longer than a reasonable time. Inventories could cut bank’s resources in terms of maintenance costs, insurance,
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Another reason why banks generally tend to dislike the idea of a ballooning inventory of foreclosures is because such fact reduces market confidence in the bank’s practices. Shareholders do not like the idea of losing huge sums of money to bad loans and the bank foreclosure properties are constant reminders of this fact. These properties are regarded as results of bad lending decisions that may cause people to lose their interest in doing business with the bank.
Why Buy Bank Foreclosure Properties