If you’re in the market for a good deal on a home, you’ve probably heard that bank-owned properties are excellent investment opportunities. Here is a brief summary about the foreclosure process and bank-owned property. In the preforeclosure stage, homeowners have defaulted on their mortgage loan but have an opportunity to pay up and stay put. Failure to pay leads to the auction stage, wherein the bank forecloses the property and auctions it to the highest bidder.

Finally, homes not sold by auction officially become bank-owned properties (also known as foreclosures and real estate owned properties or REOs). Is there any truth to the benefits of buying foreclosures that everyone is raving about? Fortunately, yes! Here are some of the top reasons why investing in a bank-owned property is a good idea.

No homeowners When you buy bank-owned property, you deal only with the bank, who in this case is the seller. This means no hassles or discomfort dealing with troubled homeowners, no tenants to evict and no worries about former owners taking legal action to reclaim their property.