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The U.S. housing market is transitioning into a new phase marked by rising foreclosures and a growing inventory of bank-owned properties. While this presents challenges for many homeowners as they see their equity decline, it also creates a significant opportunity for real estate investors who understand how the foreclosure process works and how many foreclosures will become bank owned homes. Learning how to tap into this opportunity is important because bank owned properties typically sell for pennies on the dollar. A smart investor can learn how to capitalize on this opportunity by buying these bank owned homes directly from the bank. This is what I teach at the Buying Bank Owned Properties Boot Camp which is coming up next month (Feb 20 to Feb 26).
According to ATTOM’s Year-End 2025 Foreclosure Market Report (which came out Thursday) 367,460 U.S. properties received foreclosure filings, up 14% from 2024. December saw an even sharper jump — filings rose 57% year over year — suggesting that distress may be accelerating as homeowners struggle with:
The U.S. economy added only 584,000 jobs in 2025, the weakest non-recession year for job growth since 2003. At the same time, bankruptcies, credit card delinquencies, and auto repossessions reached multi-year highs, signaling widespread financial strain.
Foreclosure activity is not evenly distributed. Several states are showing much higher rates than the national average:
Florida in particular is experiencing added pressure from soaring insurance costs and new assessment requirements for older condo buildings. In metro areas such as Lakeland (1 in 145 homes) and Cape Coral (1 in 189 homes), foreclosure levels are similar to the early stages of the last major downturn in the financial crisis of 2008.
Foreclosures turn into bank-owned properties, and the pipeline is filling fast:
As more homeowners struggle to keep up with payments — or find themselves with little equity — additional defaults become more likely. A rise in REO inventory typically follows, and when banks hold large numbers of properties, downward price pressure tends to accelerate. This means that prices will be coming down and that there will be more opportunities for investors to buy bank owned properties at huge discounts.
Historically, foreclosure cycles have created unique buying environments. When REO inventory increases, banks often prioritize speed over price, listing bank owned properties below market value and adjusting quickly if a property doesn’t sell. Banks typically lower the asking price by 5% to 10% every 30 days. As inventory piles up, prices decline further and opportunities present themselves to investors who understand how to take advantage of this situation and how to make money from this opportunity by buying bank owned properties for pennies on the dollar.
Investors who learn how to :
…will be able to acquire properties at significant discounts — sometimes for a fraction of replacement cost or for pennies on the dollar.
If price declines coincide with falling interest rates, the next 12 months could produce some of the most favorable purchasing conditions for real estate investors seen since the post-2008 recovery. The question is – will you be ready to buy? This is where having the correct education and training becomes so important. And that is what we teach at the Bank Owned Properties Boot Camp which is coming up next month (Feb 20 to 26).
Understanding how to source and locate bank owned properties is key. Knowing how to evaluate the ARV and how much to offer to purchase these bank-owned properties will be the critical factor to understand for investors who want to capitalize on this opportunity. Investors like me who were active during the last foreclosure cycle benefited from learning and understanding the systems, processes, and negotiation strategies banks use when disposing of bank owned properties. There are many insider secrets.
For example in the last foreclosure crisis many banks disposed of their properties through online auction sites. One particular auction site used the same unique and distinctive colored lock box on every property that was going to be listed on their platform. Savvy investors like me quickly identified these properties before they were listed on the MLS and capitalized on the opportunity by presenting offers directly to the listing agents.
I made millions of dollars in the last foreclosure crisis by buying bank owned properties for literally pennies on the dollar. In 2009 I purchased homes that were worth over $200,000 for just $35,000. Today these homes are worth $300,000. I also flipped many of these homes to other investors who were looking to buy properties and wrote a best selling book called “Wholesaling Bank Owned Properties” to teach other investors how to buy and flip bank owned homes.
I have spent the past 17 years teaching new real estate investors how to invest in real estate, how to buy rental properties, how to wholesale and flip properties and how to fix and flip houses. Many of the homes that were purchased have been bank owned homes.
The most pressing opportunity for new investors today is to learn how to buy foreclosures, pre-foreclosures, short sales and bank owned properties directly from the bank. To do this you need to know what the house is worth (ARV), what it will cost to repair it, and how much is the maximum amount you would be willing to offer.
I teach my students how to do this at the Bank Owned Properties Boot Camp which is coming up next month (Feb 20 to 26).
At the Bank Owned Properties Boot Camp You Will Learn:
If you want to tap into this opportunity and learn how to invest in bank owned properties make sure you attend the bank owned properties boot camp that is coming up. There are limited seats available and they are selling out fast.
www.lexlevinrad.com/foreclosures-bank-owned-properties-boot-camp/