Bank Owned Properties - When to Buy

As with all things, there are many positive and negativedependant upon residing at the property, the bank
aspects to inspecting and offering on bank ownedowned home might be your best bet. Also, it is
homes for sale. There are many instances where theimportant to understand that the "as is" clause present
asking price from the bank, when in "quick unload"under most bank owned property purchases is not
mode, are well reduced and very much a steal of aetched in stone, and that in fact many banks will pay
deal. There are also times when the bank is high onfor and expedite repairs which are holding up a loan or
their asking price, and because most bank ownedclosing.
homes are listed "as is", the buyer could kindYou will most likely be given a contract by the bank
themselves in a pickle at the time of close. The moralthat owns the property, and this needs to be carefully
of the story is: just because a property is listed as aread and sifted through before any signing or
bank owned foreclosure doesn't mean that it's theagreements take place. You may want to have an
best deal on the block.attorney present and up to speed when signing such a
Once you have determined that a bank owned homedocument, as many bank contracts are very different
is the best deal for the money available in yourfrom what you might expect with a traditional sales
situation, there are quite a few steps and setbacksagreement. Remember that the bank is not in a big
which are bound to occur. For the better part ofhurry to unload this house, no matter how delinquent
experience, the closing on the purchase of a bankthe balance is or what the percentage owed to value
owned property is long and tedious, the bank oftenis on the property.
stalling for weeks or months as if to say that theyAlso, the inspection is an important part of your buying
don't really care to be rid of the home at all. The bankprocess, and as such should be done thoroughly. Turn
owned property buyer must be prepared for manyon all the faucets, look behind all the doors for holes or
long waiting periods and times of non-communication.missing hardware, and turn on the heater. Some
This can be frustrating, but if the price and value areowners leave the foreclosed as disgruntled or agitated
right, the downtime spent is worthwhile.evictees, and the cost of extensive damages left
In these cases, it is best to be in a position where youbehind might trump the great price that you have
can afford to wait out the bank's decision. If you havenegotiated on the property. This is where you will need
the luxury of affording a small apartment for a fewto ask for repairs from the bank, even when the
months, or if you are an investor and are notcontract says "as is".