Bank Owned Properties Listing

December 1st 2009 09:29 pm

You’ve seen the ads on TV and found yourself wanting to avail of bank owned homes for sale. You look at some bank owned properties listing late-night infomercials and you think you can make a killing in the process. It all sounds good and profitable, but there are some things you need to know before you make that investment:

  • Before a property is auctioned off by the bank, it goes back to the mortgage company first for a foreclosure auction. Most of the time, these auctions do not result in bids. When that happens, the property becomes an REO or real estate owned property. The mortgage loan no longer exists and the property will now be included in bank owned properties listing. This may lower the amount you have to bid to acquire the property.
  • A bank owned home could be a great bargain. Make sure to research and look at closely at the bank owned properties listing first before making an offer. Avoid bidding wars and do not go over a property’s market value.
  • Every bank has different procedures but the goals are the same. They will try to get the best offer possible and will not let go of a property at a cheap price. Once you make a successful bid, the bank will present a counter-offer. This results into a higher price than what you originally bid, so make sure you counter the counter-offer.
  • Usually, the homes listed in bank owned properties listing are sold in an “as is” condition. They will let you make all the checks and inspections you need to do, but this will always be at cost to you. Negotiate with the bank and inquire if they can make repairs or give you a credit for the inspections you’ve done.
  • It is best to get in touch with a realtor or agent. Have him contact the bank and ask about inspection reports, “as is” forms, and other conditions of the foreclosure sale.

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