Bank Owned FAQs
Bank Owned Home FAQs
How do I buy a bank owned home? Once a property is repossessed by a bank or lender, it will be listed for sale through a real estate agent.
What about inspections? Bank-owned foreclosure homes are usually sold "as is." Many owners of homes that go into foreclosure have been struggling financially, which usually means that the house has not received needed repairs or general maintenance for a while. Some homeowners who lose their property to a lender frequently damage the property. So be prepared to do renovations and repairs. Hire a licensed home inspector to give you a written estimate of the cost to repair the property. Budget that number into your purchase price. Repair costs can be used later in your negotiation with the bank to reduce the asking price.
Will I get a clean title?
Banks should clear the title before selling but never assume this is the case just as you would if you were buying a property from anyone else.
How much can I negotiate?
As an experienced negotiator Realtor I will help you pull comps and determine the appropriate offering price. Although most banks want to unload their foreclosed properties, they won't necessarily do so cheaply. So you aren't guaranteed a fabulous price. When submitting a low offer, you need to substantiate the reduced price in writing and document your case.
Can I finance a bank owned home?
A bank owned home can usually be financed the same as a non-disressed home. It ultimately depends on your credit score. Some Banks also give loans on there own properties at a discount rate.
