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.
at 10:37 AM on Apr. 6, 2009