Georgia operates under the “non-judicial foreclosure” policy, meaning a bank doesn’t have to go to court to repossess a house. After the bank has repossessed the property through foreclosure, it typically wants to sell the property as quickly as possible to recover the money it’s owed. This is why foreclosed properties are often priced lower than other homes on the market.
However, the speed at which a bank can sell a foreclosed property depends on several factors.
Property value and marketing efforts
When a property goes into foreclosure and is put up for auction, but no one buys it, the bank takes ownership. The property then becomes what’s known as a “Real Estate Owned” (REO) property. The bank will typically try to make a sale on the property on the open market as quickly as possible, often with the help of a real estate agent. However, several factors may affect the speed of the sale, such as:
- Property condition
- Local market conditions
- Property’s pricing
- Marketing and sales efforts
The bank’s primary goal is to recover as much of the unpaid loan amount as possible. As a result, REO properties can sometimes be purchased below market value, making them potentially attractive to investors or those looking for a deal.
Buyers of foreclosed properties
Buying a foreclosed property is an exciting time. It’s an opportunity to own a home or an investment property at a lower cost. However, potential buyers must prepare for possible additional expenses for repairs or upgrades. Preparation means thorough research, considering the local market conditions and seeking professional advice to make the most informed decision possible.