A repossessed home is a residence that a bank has taken ownership of because the homeowner has failed to make his mortgage payments. While foreclosures have always been a part of the lending process, in recent years the number of repossessed home have hit record highs. From Los Angeles to New York City banks are foreclosing on homes at rates not seen since the Great Depression. This has left many of the nations biggest banks with huge inventories of repossessed homes that they are desperately trying to sell.

As a general rule, banks hate being involved in the real estate market. Not only do they have to pay for the fees associated with selling the home, but they also have to pay the costs of maintaining the homes. Foreclosures are also a liability to banks as they represent bad loans and failed policies. For these reasons and more banks are desperate to get rid of these foreclosed homes and are often offering them at well below their market value price.

If you are interested in buying a foreclosed home there are several things you should know.

It is not enough to simply look at a price and take the deal. Because repossessed homes are sold in “as is” condition, if there are repairs to be made and you buy the home you will have to pay for them. Don’t expect the bank to cover the cost of any repairs.

Since you are looking at homes that are currently in foreclosure, there is a good chance that their titles may have outstanding liens or taxes owed on them. While the bank usually clears the title before it puts the home up for sale, it is always better to be safe than sorry and check the title yourself.

Since most banks have large and growing inventories, they are desperate to negotiate and make deals. Even if you don’t have much experience, if you are a qualified homeowner with good credit you may be able to talk them down and get them to not only lower the asking price but to also pay for all closing costs. It is also always a good idea to negotiate a lower down payment and a good financing package.