Finding bank-owned homes in Arizona might be a wise consideration for investors staying in Arizona, but if there is one thing real estate investing has taught us, is that it is usually wise to maintain a diversified portfolio of properties across state lines. You might ask yourself “is buying a house in Arizona worth it in the first place?”. Arizona ended 2020 on a recovery note, two-thirds of the jobs lost due to the COVID 19 pandemic had been recovered, they have landlord-friendly laws that protects your investment and ensures tenants pay on time and they have an enactment that legalizes Airbnb (talk about an investors utopia).
Why Bank-owned homes?
A bank-owned home is a property that has been foreclosed by the banks but wasn’t sold at the foreclosure auction. they are otherwise known as distressed properties. The foreclosure process involves the bank repossesses the home because the owner fell behind on payments, the bank or the lender sends a default notice followed by a notice of sale to sell at the foreclosure auction and then the foreclosure auction takes place. When the property doesn’t get sold at the auction, the title in the property goes to the bank and it officially becomes a bank-owned home. Why does it make sense to invest in a bank-owned home?. Here are few reasons:
- The Bank is a motivated seller: Banks are in the business of lending money and not maintaining properties, therefore they are quite motivated to get the property out of their hands. They will make necessary repairs to make the house habitable. In cases when they don’t, you can use the inspection report to negotiate a lower price.
- Buying a bank-owned home helps you get into better neighborhoods that might have been out of reach.
- Bank-owned homes are easier to access, inspect and are most times vacant.
Finding bank-owned homes In Arizona
Here are a few steps on finding bank owned homes in Arizona
- Real Estate Agents: Most banks hire a realtor to monitor and help them sell properties. You can look for realtors within your preferred area in Arizona ranging from Tucson to phoenix or mesa.
- Use Skip Tracing: A reliable skip tracing service like needtoskip will help you find bank-owned properties in Arizona and provide you with a report on the properties you prefer. You should make a list of neighborhoods you are interested in and the property type you’re looking at. You can also skip trace houses that are about to be repossessed and strike a deal with the defaulting homeowner.
- Bank Websites: What better place to find information about bank-owned properties than through the banks themselves. Some banks list the properties that are for sale on their website.
- Multiple listing services: You can definitely check out multiple listing services that connect buyers with sellers of foreclosed properties e.g Auction.com.
Like in all spheres of life, there are risks involved in buying a bank-owned home ranging from the bureaucracy involved to the cost of repairs, but with having the right support from a proper skip tracing service, you can minimize risk and maximize profit.