3 Reasons to Use the Countrywide Foreclosure List

The Countrywide foreclosure list is a popular tool for real estate investors and home buyers. Before the banking crisis, Countrywide was the largest independent mortgage service provider in the United States. In 2008, Bank of America purchased Countrywide for a staggering $4.1 billion and assumed their 'toxic assets' portfolio consisting of thousands of foreclosure properties.

The Countrywide foreclosure list is presented to the public via the Bank of America website. Home buyers and investors can use the list at no charge to locate family residences, newly constructed homes, commercial real estate, and vacant land.

Countrywide / BOA real estate consists of foreclosure homes, bank owned properties, and short sale real estate. On any given day, buyers can access more than 15,000 discounted properties and cheap homes for sale. Countrywide properties are listed through local realtors or managed by Bank of America's loss mitigation department.

In order to place an offer on Countrywide homes, buyers must first obtain bank prequalification. Although prequalification does not guarantee buyers' will qualify for a mortgage loan, it does allow them to know exactly how much they can afford. Once the offer is accepted, buyers undergo the same type of lending process they would if buying property listed through a real estate agent or homeowner.

Individuals who purchase Countrywide foreclosure properties can obtain additional savings through the federal housing tax credit and first time home buyer programs. The home buyer tax credit allows a deduction of $8000 for first time buyers and $6500 for homeowners who buy a more expensive home. In order to receive the tax credit, homeowners must have resided in their primary residence for at least five years. Borrowers must obtain loan approval prior to June 30, 2010 to take advantage of the federal housing tax credit

Properties sold through the Countrywide foreclosure list consist of properties which did not sell through public auctions and now belong to the bank. Also referenced as bank owned or real estate owned (REO), these properties are sold in "as is" condition and typically require some level of repair.

The main difference with foreclosure vs. bank owned homes is when lenders regain ownership they remove creditor and tax liens and sell the house with a clean title. This is particularly helpful for first time home buyers and individuals unfamiliar with bidding on properties through foreclosure auctions.

Real estate investors often purchase repossessed homes for use as rental properties. Investors using the Countrywide foreclosure list to locate investment property should take time to become familiar with the area of prospective homes.

Tenants with school-age children typically want to live in areas with exceptional schools. Single tenants often prefer easy access to interstates, shopping malls and restaurants. Businessmen and women want easy access to the office or nearby airport. Knowing the area allows investors to find appropriate properties to attract the type of tenant they are seeking.

Buying repo homes does not always equate to substantial savings. Lenders suffer a loss during the foreclosure process and generally do not leave much room for price negotiation. However, many properties on the Countrywide foreclosure list are priced well below market value. If you are looking for a home or investment property, the Countrywide list should be a top priority.