Buying a Bank-Owned home? What you need to know..

By
Real Estate Agent with Beautiful Homes Realty DRE Lic. #01449964

If you are thinking of buying a home, chances are you may be involved in a transaction where the home is owned by a lender, or is needing lender approval, as is the case for Short Sales.

 

Make your first offer, your best offer.  When writing an offer for a property where a lender is involved, it is best to make it as simple as possible, and make it your best because in many cases the lenders do not counter offer. In some cases where multiple offers are submitted, they may ask all buyers to re-submit their highest and best before they decide.

 

Be prepared for lenders to ask you to sign their own purchase contract. These contracts should include just about everything that a normal contract has, but you need to read it very carefully, as with any contract, so that you know what the process will be and what needs to happen, and when.

 

Most lenders will not make repairs. If you find out the home needs repairs, you may ask for a credit and some lenders will issue credit, they most likely will not do repairs unless is a safety or health problem that needs to be address in to obtain financing, such as FHA.

 

Some lenders are requiring pre-approve buyers themselves before considering an offer.  You will not be required to get the loan from them, and you can also insist on them accepting your current approval.  Some lenders however, make no exceptions. Having too many credit checks may affect your score in a negative way, so be cautious when letting that take place. A plus on this is that you'll get to see what they can offer you.

 

Lenders are not required, or able, to disclose all the things a regular seller is.  Because the lenders do not have a personal knowledge of the property, they are not able to disclose many things. However, they are not exempt from every thing. You agent will give a disclosure that states what the lenders are exempt from. So this being the case, you must be extra careful as to the inspection of the home.

 

CLOSE ON T IME.  Many lenders have a per diem charge of about $100/per day is you do not close on time. So you must stay on top of the transaction to make sure there no delays cause by something on your side.

 

Please feel free to contact me with any questions on buying or selling your home.

 

Posted by

ADDIE SCHARFF, Home-Staging REALTORĀ®
HUD approved broker
Platinum REO Certified (Equator)
Platinum Short Sale Certified (Equator)

BEAUTIFUL HOMES REALTY
We STAGE & SELL, you PROFIT!

AddieScharff@Yahoo.com
408-887-2142 Prim
209-277-8346 Sec
209-669-9122 Fax
www.AddieAddsValue.com

DRE #01449964

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