Experts believe that new buyers of affordable foreclosed homes should buy bank homes because this type of foreclosure offers the highest level of security. Others may argue that bank owned properties are not the cheapest homes in the market. But sometimes ease and secure transactions overtake the goal of buying the cheapest home available.
If a buyer's priority is to find a reasonably priced foreclosed home with lesser stress levels and difficulties then they should buy bank homes knowing that all transactions are above board and on the level. There are multitudes of bank owned homes that buyers can choose from and they are scattered across the country. Banks would naturally have a high inventory of repossessed homes as they are the leading provider of financing for home buyers.
But even having a high inventory of foreclosed homes does not make banks a major player in the real estate industry. Banks do not normally operate in the home selling market because this is not part of their business plan. They would hire asset management companies to handle their repossessed homes so buyers will mostly transact with bank representatives.
What Is in It for Buyers?
Banks endeavor to unload as much of its foreclosed properties on the market as possible so they offer incentives for buyers. The price is definitely a point that buyers can negotiate as well as the payment terms and the interest rate. Bank owned homes come with an official appraisal that the bank has undertaken. Title insurance is typically a part of the package as well as a minimum pet certification. Buyers would not need to worry about evicting the former occupants of the property as these house are vacated before they are even put up for sale. When you buy bank homes just make sure to check your protection against the cost of repairing the damages to the property. It is recommended that buyers stipulate a clause that will enable them to withdraw from the purchase pending the results of a professional home inspection.