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Buying a bank owned home

If you are thinking about buying a bank owned home, and lots of people are, here are a few tips.

1. Use an agent that has some experience representing buyers of bank owned homes (REO)

2. Put down at least a 1% earnest deposit.

3. Most of the time the seller (Bank) is going to choose the Title and Escrow company.

4. You will probably not get any repairs paid for by the seller (bank). (If its a safety issue you might)

5. If it is a low priced, good condition, clean REO there may be multiple offers. (We are seeing this happen a lot here in the Central Valley of California)

6. Be aware of the closing date, if you can't close on time it may cost you a lot of money. Some banks will charge you up to $100 or more per day for every day the closing is delayed.

Bank owned home (REO)

While every state and area is different I think the above tips will help you achive your goal of buying a Bank Owned Home.

I know from my experience of selling Bank Owned Homes what the banks are willing to accept and what they will counter you back on.

Bank Owned Home sales can and should go very smoothly, it just takes a little experience.

If you would like more information on buying a Bank Owned Home or would like me to email you Bank Owned home listings give me a call at 209-633-2839.

Jim Patton - Realtor

Century 21 M&M and Associates

DRE# 01423125

www.JPattonHomes.com

Posted by Jim Patton - Realtor - Turlock California Real Estate on 04/14/2008 02:39 PM

Comments (4)

bank owned homes, reo, foreclosures, stanislaus county, merced county, jim patton

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4 Comments on Buying a bank owned home

APR

2008

Hi Jim: Plus, some banks refuse to issue counter offers until the buyer submits a counter, based on the bank's verbal. Buyers should also know that a bank bristles at offers that ask the bank to pay for things the bank generally doesn't pay for such as termite reports, home inspection plans, roof certifications -- it just goes to show that the buyer's agent is a novice. But I am having success at getting banks to pay for part of the buyer's closing costs and some repairs. Most are not easy closings, either, because banks don't always respond immediately to signing off on HUD-1's, which escrow requires to close. So always send the HUD-1 far in advance of closing.

Elizabeth - Thanks for the comment. You bring up some very good points. I still get offers on my REO's asking for pest repairs, section 1 AND 2, and home warranties. I too have gotten some repairs done. So far the asset managment company I have been getting my listings from has been real good to work with.

APR

2008

I have my eye on a foreclosure in MA ( the hardest state to do anything in ) and it's only been on the market two weeks. The price only 130K, about half of the assessed price, because it is in terrible disrepair and the hardwood floors are covered in dog feces - yes, difficult to even imagine...My problem is that since the market is so slow right now and there have been two recent foreclosures on the street I live, my house ( residence , not house I am looking at ) has appraised at an extremely low value ( the foreclosures were used as comps ) and I cannot pull any equity out to purchase the investment foreclosure. Can and should I try to purchase it in another way or through unconventional funding - this is going to be an investment property - a rental.

Piper

I would think you could try something. You may to try a lender that thinks outside the box but a lot of them are inside the box now.

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