What's A Foreclosure Really? Episode 41

What's the difference between a foreclosure auction and a bank-owned home? Homes get sold every day at foreclosure auction. This occurs after a homeowner fails to make their mortgage payments. The bank or lender will eventually sell off the home at auction. This is where the deals can be found. Often times, bidders at the foreclosure auction will not bid enough, either because there's not enough interest or because the debt is too high, and the bank takes back the property. Then the bank will place the property with a real estate broker and try to get the highest price possible. This is a bank owned property and the deal isn't as potentially as lucrative as a foreclosure sale.