subject: Why to Bank Owned Homes Make Better Deals? [print this page] Bank owned homesare probably the best foreclosure properties one can buy when you consider the level of ease going through the buying process. While the discount you may get from a bank owned home may not be as low as with other types of foreclosures, security and low stress level are the bigger attractions of bank owned homes.
Banks Are Not In the Business of Selling Homes
Selling homes is not a part of a bank's normal operations but banks gain ownership of homes they have foreclosed on when these do not sell at public auctions. Most banks and lending institutions establish a separate department to take charge of their inventory of foreclosures. When a home reverts to the bank due to mortgage default, it becomes a non-performing asset and the bank wants to immediately sell it off in the market. Most banks will only transact with licensed brokers so you need to get in touch with one if you plan to buy bank owned homes
Advantages of Bank Owned Homes
While banks would want to sell the homes in their present condition or as is, they find that these properties are more attractive to buyers if some of the minor repairs have been taken care of and if the package will include a Section 1 pest certification. Most banks will do this plus they will throw in other value added products and services. One of the perks of buying bank owned homes is that they usually come with a title insurance to cover taxes and liens attached to the property, this saves the buyer time and money on a title research and they are assured of a clean title. Banks will also handle the eviction of occupants and will give prospective buyers ample time to inspect the home before making an offer. In a nutshell, bank owned homes are cheap, secure and virtually stress-free.
