Buying Bank Owned Homes

Infomration to buying Bank Owned Homes

For the last several years many buyers have wanted to buy great deals in the Laveen area. A great way to find deals or find a home for below market value has been to look for REO (Real estate owned – Bank Owned) properties. Yet just like most things in life, you should know how to go about buying a bank owned home. A bank owned home is basically a home that has been repossessed by the bank for lack of payment by the homeowner. In other words it has already gone through the foreclosure process, and now is owned by the bank.

First thing, look for a secure a bank owned home. The looking is easy, and at the bottom of this page you’ll see all Laveen bank owned homes currently on the market. I always tell buyers make sure you are prequalified for a loan. If you’re buying in cash, then no need for the prequalification. The reason for a prequalification is to make sure once you find a home you can make and offer as quick as possible to increase your opportunity to secure a contract on the property. Once you have secured an accepted offer on a property you can begin inspections on your home. Many banks will use bank contract addendums that have been drafted up by their attorneys. Each addendum of course is different, yet the nature of them is pretty similar. Addendums will address the fact that bank is selling home “as is”, generally no repairs to be made, and that bank has no knowledge of condition of home, buyer to conduct their own inspections to determine condition of home meets their satisfaction. That may be it in a nut shell, but each bank addendum is different, and should be reviewed closely. Included would also be how long you have to inspect home.

Biggest thing with buying a bank owned home is that most banks tend to sell the home in its present condition with no warranties or repairs. This means that as a buyer you should know full well what the condition of home is, because any repairs needed will be done after buyer has taken ownership of home. Because of the fact that homes is sold in present condition, it is highly recommended to have the home inspected by a professional to verify and issues of the home. Again, know that bank will generally not make any repairs.

Once inspections are complete, it is really just time to move toward a close. If your getting a loan, the bulk of the work at this time will be done by your lender. Once your lender has all needed loan documents will be prepared for buyers signing and ownership of home will transfer. DONE Deal.

Highly recommended, once you take ownership, change the locks on the home.

Hope this description of buying deals or bank owned homes in Laveen has helped. If you have questions send them to me.