A few tips... , you are interested in purchasing a bank owned property??

You have probably heard that foreclosures can be a bargain. And, this is true. However, it is important to understand that when a bank gets a property back, the bank has lost money that they would have received had the homeowner been able to continue making their payments.

The foreclosure market is currently undergoing many challenges as banks see their default and foreclosure rates escalating. When the bank gets a property back they will want to as quickly as possible recapture as much of the loss as the market will stand. That is, they will want to sell the property for market value or as close as possible. Some lenders will make minor repairs and some may not. Most often the properties will be listed “as is. “ An "as is" home sale means the seller must disclose to the buyer all known defects, but the seller is not obligated to pay for any repairs

It is important for buyers to have the property inspected in order to know the full extent of the repairs that may be needed. Many times an angry homeowner may have stripped the home of plumbing, fixtures, built in appliances, cabinets, sinks, bathtubs, etc. You may have to replace these items at your own expense.

The costs of repairs should be thoroughly considered when making an offer. However, some banks are finding that they have a greater chance of moving a property and getting a higher price if the property is “move in” ready. Then, of course the lender will only consider offers that are in line with the asking price. This approach does not leave much room for buyer negotiation.

Something else to consider when thinking about purchasing a foreclosure, is financing. Can you qualify with the bank offering the property? If not, will the bank accept your qualifying with another lender? Remember, the bank will want to move the property as quickly as possible and will not want to lose any time. They do not want the transaction to fall from escrow because a buyer could not get financed. If you have good credit and some resources i.e., down payment and cash reserves, the bank will consider you a strong buyer.

Often the bank will grant concessions with closing costs, amount of down payment, etc to a strong buyer. These concessions will usually depend on how badly the lender needs to move a property.

For assistance in making an offer please contact me. Remember the listing agent as in any home sale is actually representing the seller. In the case of foreclosures, that means the bank. As the buyer you need representation. For a FREE list of bank owned properties in your area of interest contact me at www.PattiLyles.com.