If you've never bought a bank-owned property, you might think it's difficult or that you have to have some sort of special knowledge.

You may have also heard how inexpensive it can be to buy a property from a bank, especially one that needs some work. You can easily save tens of thousands on a house or condominium or duplex when buying from a lender.

So what's the real deal? Why should you buy a foreclosure? Here are ten reasons that can make a bank-owned property a better bet than buying from a homeowner:

(1) Price. A foreclosure is almost always less expensive than a property being sold by a homeowner. Most banks will price a house where it will sell quickly and not sit on the market forever. In many areas you could easily save 15% or more verses an owner-occupied property.

(2) Predictability. When a bank is the seller, there are no emotions involved. When a bank says they will do something, you can usually count on them doing it. It's virtually guaranteed that the property will be vacant on the day of closing, so you can start moving in or working on it. Some homeowners have difficulty moving out on time, especially if they are purchasing another house at the same time.

(3) Flexibility. A lender doesn't want to own a property, and consequently will often work with you more than a homeowner would or could. The right lender may be more flexible on pricing and closing costs than a homeowner would be.

(4) Financing. Many lenders will not only sell you a house, but will also offer financing. Sometimes their terms will be better than what you could find on your own, and it may be easier to qualify.

(5) Ease of inspection. Since most bank-owned properties are vacant, you can look at the property at your convenience, and have it inspected at your convenience. There is no furniture hiding any defects.

(6) It's relatively easy. It can be easier to buy a foreclosure than to buy a house from an owner occupant, especially if you find a place that doesn't need too much work. In most cases you can have the property inspected just like any other place.

(7) If you work with a Realtor who specializes in REOs (Real Estate Owned is the term for bank-owned property) you will have an expert who can guide you through the process and answer any questions you may have.

(8) Selection. In many areas the selection of bank-owned properties is at an all time high. (9) Instant equity. Even in a falling market, you can often buy a property at a price that gives you instant equity of tens or even hundreds of thousands of dollars.

(10) Live in a more expensive area than you could otherwise afford. If you can find a bank-owned property for 15% or more less than comparable properties, you can normally afford to live in a more expensive area than if you purchased an owner-occupied property. Don't be afraid of a little ugly paint and carpet, find a reliable Realtor who specializes in bank-owned property, and go out and find yourself a bargain!Author About:

For more information on purchasing a bank owned property (REO) check out Downey Savings.