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bank owned

Has anyone brought a bank owned home. tips or advice.

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Anonymous

Asked by Anonymous at 10:07 AM on Apr. 6, 2009 in Home & Garden

Answers (2)
  • Get a realtor to help you through the process. It's free to you anyway if you're the one buying. And always. ALWAYS have the home inspected by a certified inspector, whether the home is bank-owned or not. But particularly with a bank-owned one, because most of the time, it won't have a seller's disclosure letter (admitting any major problems the home might have). An inspection will probably run between $200-$400 bucks, but will uncover any issues the home has so you can decide whether or not to proceed with the purchase, and if so, how much to budget for repairs. But definitely get a good real estate agent as he or she will be able to guide you through the process and let you know exactly what you need to do.
    Anonymous

    Answer by Anonymous at 10:15 AM on Apr. 6, 2009

  • It varies greatly on the type of bank owned home, why it was bank owned, and at what stage the home became bank owned. If the bank owns a home that was a foreclosure that was destroyed by the inhabitants over 7-8 years you need inspections, disclosures and then lowball with your offers.
    If the bank owns a new home a builder lost, you can only expect to get the house for maybe 10-15% lower than what it would have sold for to begin with.
    It depends on what you want and what you are willing to spend. Remember, with foreclosures, the previous owners always have the right for up to 5 years to reclaim the house if they come up with the money.
    Be prepared to have a preapproval letter along with documentation of funds availability, and be prepared to come up with 10% at time of offer and the rest in less than 30 days for closing. The banks want cash and they don't care about any situation you are in.
    Anonymous

    Answer by Anonymous at 10:37 AM on Apr. 6, 2009

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