Banks own real estate because the banks have acquired the homes through foreclosure. Homes on a bank's books are called “REO’s”, which is an acronym for "real estate owned." Realize that when banks receive property deeds to homes through foreclosure, it's because no one showed up on the courthouse steps to bid the minimum amount of the existing mortgage(s) during the bank’s auction.
 
On the surface, it might not sound as though foreclosures are profitable, especially if the bank wants to sell its inventory on the open market for the amount that was once owed to the bank by the previous mortgagor. However, here are at least two reasons why an REO can be profitable to you:

1. If two loans were secured to the property (which is common these days), the second lender sometimes does not foreclose.
2. If the second lender does not make up the back payments to the first lender and commence its own foreclosure proceedings, the second lender usually gets wiped out in the foreclosure. Many second mortgages comprise 20% or more of original market value.

 
The bank does not want to sit on its inventory. Since it did not receive its minimum bid from an investor or home buyer during the foreclosure sale at the courthouse, the bank is likely to price that REO home competitively.  They will do an appraisal and typically will want to get somewhere near the appraised value but will generally take less to move the property off of their books.  Sometimes these can be great deals, sometimes not.  It really depends on how much the bank is carrying in loan balances and how much they are willing to discount.

It is very important to do the homework on the property.  Since the property typically will be sold “as is” with no repairs, the buyer should factor in any repairs costs to make sure that the property will still be a good deal when all is said and done. 
 
Our computer systems scan the largest and most comprehensive Real Estate database in Orange County CA, looking for Foreclosures, Bank Owned REO's, Short Sales and other types of homes for sale according to the criteria you specify.  These Orange County Homes will then be emailed to you and will include the details of: Asking Price, Address, Multiple Photos, Bedrooms and Baths, Size, Maps, complete Property description, Schools and many other property details.
 
If you are looking to buy a home or condo for a great price here in Orange County, CA, we can help.  We are dedicated and licensed Realtors who have many years of experience in negotiating the purchase of properties... And our services are Free to you.  We will assist you in every step of the transaction to ensure that you get the best deal and have a great experience in the process.