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Home > Bank Foreclosure > Inside Bank Foreclosures Inside Bank Foreclosures Inside Bank Foreclosures: Fact and Fiction
from The Real Estate Library
Many new investors want to buy properties directly from the bank.
You never hear anyone say, "I want to buy a property from a mortgage company, credit union or savings and loan." The attraction to bank owned properties is understandable, as it is the bank you borrow money from to buy a home.
It is natural to assume that the bank owns the property.
Whether a Deed of Trust or Mortgage, the title to your property is either held by a third party or pledged as security for the loan, so in fact the bank does not own the property.
You borrow money from and give a mortgage to the bank.
The mortgage is the security instrument utilized to protect the bank from loss should you default on the loan.
Unless you bought a bank foreclosure directly from the bank, the bank has never owned the property at all.
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