Parsons Realty

Full Service - Low Flat Fee

  • Home
  • Real Estate Search
  • Buyers
  • Blog
  • Contact Us
You are here: Home / Blog

Buying Bank Owned Properties

July 18, 2008 By

I’m sure you have seen the late night infomercials and heard stories about people making a lot of money from buying foreclosed homes.  Generally they tell you how easy it is and that you can buy these properties from the bank for pennies on the dollar.  It is true you can make a lot of money investing in foreclosures; however it is never as easy as the stories make it sound. 

Most people do not know where or how to get started and often times get discouraged before they even buy their first property.  We are going to start out with the basics on how properties become bank owned and how you can find them. 

In California which is a deed of trust state there are a generally only two ways that lenders can get the property back from a borrower. 

Deed in lieu of foreclosure – This is when a borrower will give the property back to the lender to satisfy a loan in default and to stop foreclosure proceedings.  This is a lot less common then the property being foreclosed.  There are several advantages for both borrower and lender.  The main advantage to the lender is they get the property back much sooner than foreclosing and the borrower will avoid the public embarrassment of a foreclosure.

Auction – if a property goes up for foreclosure sale and no one is willing to pay the minimum bid then title will be transferred to the beneficiary (lender) and the property is now REO.  It is not un-common for properties to not sell at auction.  In most states to bid you are required to have certified funds, such as cashier’s checks or cash.  The recent trend is borrowers will owe more than the home is worth.  The minimum bid is typically close to what the foreclosing liens balance is plus fees & backed interest.  So there are not as many deals at auction as you would think.

Once the lender is in control of the property they will work with an asset manager to get the property sold ASAP. 

How does the lender establish a listing price?

The asset manager will hire a local appraiser or a BPO agent to give them their opinion of value.  The asset manager will often order a second opinion of value to reaffirm the first.  While they are doing that they will be looking for a local agent to market the property for sale.  Sometimes this process can take a couple of weeks or even months. 

Insider Secret:  Most of the lenders will post a list of their REO properties on their website.  See our list of lender websites to find REO properties before they are listed.

As soon as the asset manager has arrived at the listing price and contracted with a local agent to list the property, it will be posted on the local MLS.  This is the point where most investors will find out about the properties and it can get pretty competitive depending on how good the deal is.  The trick is to find out about these properties as soon as they are listed if not before.

Insider Secret:  With our VIP Buyer Service you can receive these listings as soon as they hit the market.  We will send all REO properties straight to your email inbox within minutes of being posted to the MLS.  Sign up here!

Now you have a basic understanding of how to find bank owned properties.  In the next posting we will discuss what to do when you find a screaming deal and how to make it an even better one.

We encourage your comments and questions.

Filed Under: Blog, Buyers, Foreclosure Investing, REO

2500 Velia St, Redding CA $175,000

June 30, 2008 By Chris Parsons Leave a Comment

Nice three bedroom home in a convenient Redding location. Large family room with a gaslight fireplace, central heat and air, spacious kitchen and attached dining area. Needs a little TLC but it will be a great home.

See other Redding Homes for sale by searching our  the Redding MLS

Filed Under: Sold

21819 Eagle Peak Dr, Cottonwood CA

June 11, 2008 By Chris Parsons Leave a Comment

Very nice 3/3 with an open floor plan and indoor laundry. Vaulted ceilings in the family room with a gaslite fireplace. Nice views from deck and a good size backyard. Cool evening nights in the winter.

Filed Under: Sold

3811 Olive St, Shasta Lake CA $169,500

April 29, 2008 By Chris Parsons Leave a Comment

Very clean home on a private, wooded lot in Shasta Lake. Three bedrooms, two full baths. Attached two car garage. Brushed satin door hardware. Two tone interior paint. Very sharp. Look at the photos! Kitchen is roomy with a eating area and lots of cabinets. Newer Bryant Central heat and air. Great 1st home or investment property! Washer/dryer included.

Search for other great homes in Shasta Lake City with our Shasta Lake MLS Search

Parsons Realty represented buyer in this transaction, listing information provided by Redding Real Estate.

Filed Under: Sold

19498 Sweet Brier, Cottonwood CA $148,900

November 11, 2007 By Chris Parsons Leave a Comment

Great opportunity in Lake California.  Surrounded by new and remodeled homes on large lot and fenced back yard. Good size home that needs some tlc.  Enjoy all of the amenities of Lake California including a private lake and Sacramento River boat launch.

Search for all available homes in Lake California with our Lake California MLS Search

Filed Under: Sold

19292 Sellins View, Redding CA $449,000

May 6, 2006 By Chris Parsons Leave a Comment

One of the best Redding locations! Huge 1/2 acre lot, almost new and views of snow capped mountains. Master suite with jetted tub, 2-sided fireplace, wrap around kitchen, separate laundry area, deep 3-car garage/shop, covered patio and large concrete pad for oversized RV or boat parking.

Search for other great homes in Redding with our Redding MLS Search

Filed Under: Sold

  • « Previous Page
  • 1
  • …
  • 424
  • 425
  • 426

530-222-1818
1171 Hilltop Dr
Redding CA 96003

Latest News

  • The Five Most Expensive Homes For Sale In Redding, CA
  • Homes For Sale In Redding, CA Under $300,000
  • Redding Homes For Sale – Inventory Starting to Climb
  • Redding Weekly Real Estate Report: April 8 2013
  • Palo Cedro Home Sales – February 2013

Subscribe

We have new properties coming. Get the latest updates delivered to your inbox in an easy to read email presentation. Imagine finding your next home tomorrow. It happens. Please subscribe below.

We respect and value your privacy. We will only deliver property updates to your email address.

Redding Properties

27,102 Listings
3733 Capricorn Way, Redding, CA 96002

$339,000 3 beds  2 baths  1,294 sqft 3733 Capricorn Way
Redding, CA 96002

IDX
3680 Wasatch Drive, Redding, CA 96001

$439,900 3 beds  2 baths  1,792 sqft 3680 Wasatch Drive
Redding, CA 96001

IDX
previous next

IDX MLS IDX Listing Disclosure © 2025

Information deemed reliable but not guaranteed.

Social Media

  • Facebook
  • Instagram

© Copyright 2025 Parsons Realty · Lic# 01312921 · All Rights Reserved · Powered by steelbridge.io