Investors Hunt For Bank-Owned Property Bargains In Packs
One man’s castle is another’s commodity.
Investors, alone and in groups, are negotiating volume deals to buy bank-owned homes and defaulted first mortgages at deep discounts.
It’s a new twist in an upside-down real estate market. Forget negotiating with a bank for one repossessed house — too slow, too pricey. Investors now buy whole subdivisions or bundles of 10, 20 or 50 defaulted loans for pennies on the dollar.
Some in real estate call this the best market for investors since the savings and loan debacle of the 1980s, when the government took over property owned by failed banks and sold it at huge discounts.