In recent years, many banks have seen the loans they have made to homeowners go unpaid, sometimes for several months, even years. Banks are in the business of lending money. That is how they make their profits and stay afloat. Homeowners who fail to make payments on their mortgages stand in the way of allowing these banks to accomplish their mission and do their jobs well. That’s why dozens of these banks have collapsed recently. Those who fail have assets that need to be disposed of. Sometimes, because banks are in need of immediate cash, they are compelled or prefer to sell in bulk the properties they have foreclosed on. They are willing to discount these properties by as much as 30-50%, sometimes even as deep as 75%, in some states. Investors who can afford to buy in bulk stand the chance of making HUGE profits when they flip these homes to either other investors or end-buyers.

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