The difference between bank foreclosed house and government foreclosed homes

If you are looking to invest in foreclosures or if you just want to buy a foreclosure for yourself, then you will want to know the difference between a bank foreclosed house and government foreclosed homes.

A bank foreclosed house is when the home owner has failed to make their monthly mortgage payment.  When this happens the bank is allowed to take over the property after a certain timeframe agreed upon in the contract, normally 3 months.  When the bank takes it over they will try to sell it for what is owed as a bank-owned listing.  If it doesn't sell then it moves to auction. 

Government foreclosed homes are a little different, normally it means that the owner has not paid their property tax, so the government will take the property and sell it at an auction.  The auction price normally starts at the taxes owed and then will go to the highest bidder. 

Hopefully this will help you on your home buying journey.