There are a few reasons why bank owned properties sometimes sell for less than the price that they'd normally be valued at. The first reason is that banks only have a set amount of time to resell the home before they start losing more money on the property than it's worth. In this situation, the bank needs to sell the property as quickly as possible, otherwise, it'll have no other option but to sell it for less.
Another reason is that some investors purchase these homes in order to flip them and make a quick profit. If you're going to invest in bank owned homes, you need to really research what's going on in the area and find out how much these properties typically sell for so that you can make an educated decision.
Finally, banks tend to resell these properties because they want the high-value buyers looking at them again, so they try and get as much money as they can out of these homes while they still have a chance.
At Invest With Ben, we want to help you find the bank owned home
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