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Buy a Bank Owned Home Seattle

Real Estate Agent with All American Realty

Buy a Bank Owned Home Seattle.

So you want to buy a bank owned home in Seattle? Well if you are interested in buying a home directly from the bank than you will need to know some "tricks" to help you get the best deal you can. Before you start this journey of buying a bank owned home in Seattle you will want to find a real estate agent with experience in buying bank owned homes.  You could make this trip through the real estate maze on your own but it could end up being an expensive lesson.

Lake Union View home

Why do that when you can get an experienced professional at no cost to the buyer?? You will also get an experienced real estate agent that really knows bank owned homes, and how you can buy a bank owned home in Seattle. 

Most people don't know the difference between:

1. Short sale homes

2. Bank Auction homes

3. Buy a Bank owned home

1. "Short sale"

The majority of the distressed home you see for sale now are not bank owned homes, they are "short sale" homes. A short sale home is when the owner falls behind in their mortgage payments and the mortgage amount is more than the current property value. The owner then attempts to sell the home for an amount lower than the mortgage. These transactions can be complicated and usually need an experienced real estate agent and or a real estate attorney to finalize the deal. Short sale home Crown Hill Seattle

Crown Hill Seattle short sale

The buyer can get a very good deal on a short sale home, but there are many pitfalls along the way.

a. most of the time a short sale can take up to 4 to 6 months to finalize, and as a buyer you will not know if the transaction will work out until just before the closing.

b. The bank that holds the mortgage will need to agree to the sale of the home and agree to take an amount less than what they are owed, or an amount "short" of the full mortgage amount. That is why they are called "short sales"

2. Bank Auction

If the house doesn't sell or the bank will not agree to a short sale then the house will go to auction. This is another good opportunity to buy a bank owned home in Seattle or any other area but some of the problems you may incounter include.

a. You must pay all cash at the auction, and for most buyer's this is not an option

b. The buyer must clear the title to make sure that the auction includes all of the liens attached to the property, most of the time the home will have other liens and or title issues that can cost the buyer thousands of dollars in unplanned costs.

c. You will need to evict the old owner or tenant if they still are on the property

If this scares you, which it does me, the best option is to wait until the home is taken back by the bank!

3. Buy a Bank Owned Home in Seattle

This is one of the best ways to gain instant equity! These homes are non performing assets to these banks, and have been for one two or more years in many cases. The bank has gone through all the above steps and now has secured the property, cleared the title, and in many cases fixed the major issues.

a. These homes are priced to sell and you don't have the emotion of a regular seller

b. To the banks these are assets and need to be moved off the books

c. Many times you can get special financing offers such as no appraisal, or other incentive

If  you are interested in more information about bank properties, and want to work with an experience broker who has closed over 1,000 transactions I am here for you. Give me a call directly on my cell phone 206-650-4242



Mary Lockman
Windermere Real Estate Methow Valley - Winthrop, WA
Methow Valley Real Estate

Great Blog, so many buyers and sellers will need this information. I think it is very telling that Washingtion Association of Realtors is offering the Foreclosures and Short Sales Course all over the state.  We are suddenly seeing these come up in our little Valley. Very disconcerting.

Jan 21, 2010 09:57 AM
Brett Parcell
All American Realty - Snohomish, WA

thanks didnt mean to go public yet wasnt finished. only had it posted for 1 min. will add and finish.

Thanks though

Jan 21, 2010 10:19 AM