Building Personal Wealth with Bank Owned Properties
Building Personal Wealth with Bank Owned Properties
Bank owned properties are also known as real estate owned homes. They are sold as is but at greatly discounted rates. Most banks have an inventory of foreclosed homes that they consider non-performing assets. The pressure is high on them to sell these homes as fast as possible as they bear down on the resources of the bank.
Qualities of Bank Foreclosures
Distressed homes become bank owned properties when they do not sell at auctions. The banks then appoint real estate agents or brokers to sell these properties for them. They also list the homes in various foreclosure listings. Banks go the extra length to ensure that these homes get sold. Once a home becomes real estate owned, the mortgage is extinguished but is priced closer to the value of the outstanding loan than the real market value. The homes offer great savings potential for buyers.
Prospective buyers of bank foreclosures should be able to inspect the property prior to signing the deed of sale. In fact buyers can stipulate a clause on the sale contract that will allow them to pull out of the agreement pending the result of the home inspection to be carried out by a professional inspector.
Bank owned properties sold to the market always come with title insurance unlike other types of foreclosures where would be buyers still need to conduct a title search to reveal the status of the property in terms of back taxes, liens and other holds.
There will typically be a minimum pest certification that comes with the home and the bank will likewise handle the eviction of former occupants so that the new owners can move in without much problems.
To purchase bank foreclosed homes, you need to make an offer through the bank-appointed agent or broker. The bank can make a counter-offer which you may either accept or do a counter-offer for. You may also negotiate for other aspects of the contract like the mortgage terms and the rate of interest.
